A Company Can Generate an Return on Equity (ROE) of 12

question 4

Essay

A company can generate an return on equity (ROE) of 12% and has an earnings retention ratio of 0.80. Next year's earnings are projected at $100 million. If the required rate of return for the company is 10%, what is the company's tangible P/E value, franchise factor, growth factor, and franchise
P/E value?

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Definitions:

Attractive

Having qualities or features that evoke interest, desire, or pleasure in observers.

Inverted Triangle

A writing structure often used in journalism that starts with the most important information and follows with details in decreasing order of importance.

Hourglass Shape

A body figure characterized by a wider bust and hips with a narrower waist, resembling an hourglass.

Standards Of Beauty

Socially constructed ideals that define what is considered attractive or desirable within a culture or society.