Which is 10 its expected earnings this year are 4 per share


Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $4 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of

a.0.00 
b.0.40 
c.0.80 
Return on equity...... 10.00%
Discount rate....... 10.00%
Expected earnings per share. $4.00

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