DATA

ROE 8% PART A
beta 1.15 Expected Growth Rate(g)
plowback ratio 0.67 Dividend(D1)
EPS 3 Required rate of return (k)
Rm 13.00% Price =
Rf 6.00%

new plowback 0.33 PART B

E1
Trailing P/E (based on EPS)
Leading P/E (different formula
Leading P/E
Trailing P/E (based on EPS)
differnet formula
TA PART C
5.360% PVGO -9.7307698545
1.043064
14.050%
12.00304

PART D
TB Expected Growth Rate(g) 2.640%
3.0536 Dividend(D) 2.063064
4.001013 Required rate of return(k) 14.050%
3.797468 Price = 18.0811919369
3.930783
4.001013 V0 increased as company pays more earnings as compared to
reinvesting them at a bad ROE. Information is not yet known to the r
of the market
 gs as compared to
n is not yet known to the rest