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Union Enterprise Has an Expected Profit Margin of 12 Percent,turnover

question 58

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Union Enterprise has an expected profit margin of 12 percent,turnover ratio of 1.5,and a leverage ratio of 0.8.Union plans to distribute 45 percent of its expected earnings of $1 million as a dividend next year.What is the firm's P/E ratio if the risk-free rate is 4.75 percent and the risk premium associated with the shares is 6.75 percent?


Definitions:

Exhibitionism

A sexual disorder characterized by a powerful urge to expose one's genitals to an unsuspecting stranger for sexual satisfaction.

Voyeurism

An interest in or practice of obtaining sexual gratification from watching others without their consent, especially when those being watched are in a private act.

Body Parts

The distinct pieces or sections of a living organism's body, each serving specific functions.

Domination and Submission

A set of behaviors, customs, and rituals involving the giving and accepting of control of one individual over another within an erotic or lifestyle context.

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