The market consensus is that Pinto plc has an ROE of 9 per cent, a beta of
Question:
The market consensus is that Pinto plc has an ROE of 9 per cent, a beta of 1.25, and plans to maintain its plowback ratio of 0.67. This year’s earnings per share was €3. The consensus view of the expected market return is 14 per cent, and the return on Treasury Bills is currently 6 per cent. What is the current PE ratio for the company? What is the prospective PE ratio for the company?
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Step by Step Answer:
To calculate the current and prospective pricetoearnings PE ratios for Pinto plc well use the follow...View the full answer
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Related Book For 
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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