1. The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3.60. if the firms plow back ratio is 50% the PE ratio will be?
7.69, 8.33, 9.09, 11.11
Torque corporation is expected to pay a dividend of $1 in the upcoming year. dividends are expected to grow at a rate of 6% per year. the risk free rate of return is 5% and the expected return on the market portfolio is 13%. the stock of torque corporation has a beta of 1.2. what is the return you should require on torque stock?
12%, 14.6%, 15.6%, 20%