The Market Capitalization Rate on the Stock of Flexsteel Company

question 79

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 above

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Definitions:

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders used by mental health professionals in the U.S.

Factual Basis

Factual basis refers to the underlying real facts or data that support a statement, argument, or hypothesis.

Delusions

False beliefs held despite strong evidence against them, often occurring as a symptom of psychiatric disorders.

Antisocial Personality

A mental health condition defined by a persistent tendency to ignore or infringe upon the rights of other individuals over an extended period.