- 2 Castles In The Sand Generates A Rate Of Return Of 10 On Its Investments And Maintains A Plowback Ratio Of 0 50 Its 1 (71.57 KiB) Viewed 92 times
2. Castles in the Sand generates a rate of return of 10% on its investments and maintains a plowback ratio of 0.50. Its
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2. Castles in the Sand generates a rate of return of 10% on its investments and maintains a plowback ratio of 0.50. Its
2. Castles in the Sand generates a rate of return of 10% on its investments and maintains a plowback ratio of 0.50. Its earnings this year will be $3 per share. Investors expect a rate of return of 8% on the stock. a. Find the price and P/E ratio of the firm. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 18 points Price P/E ratio eBook 100 Hint b. Find the price and P/E ratio of the firm if the plowback ratio is reduced to 0.40. (Do not round intermediate calculations. Round your answers to 2 decimal places.) References Price P/E ratio