Question: Question 1 [20 points] You have learnt: P0=kgD1;g=ROEb. (1) Derive the P/E ratio as a function of b. [10 points] (2) Prove that if ROE

Question 1 [20 points] You have learnt: P0=kgD1;g=ROEb. (1) Derive the

Question 1 [20 points] You have learnt: P0=kgD1;g=ROEb. (1) Derive the P/E ratio as a function of b. [10 points] (2) Prove that if ROE

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