The Market-Capitalization Rate on the Stock of Flexsteel Company Is

question 28

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 50%, the P/E ratio will be

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

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