The Market Capitalization Rate on the Stock of Flexsteel Company

question 130

Multiple Choice

The market capitalization rate on the stock of Flexsteel Company is 12%.The expected ROE is 13% and the expected EPS are $3.60.If the firm's plowback ratio is 75%, the P/E ratio will be

• A)7.69.
• B)8.33.
• C)9.09.
• D)11.11.
• E)None of the options

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