We know the stock market has a mean ROR of .12. We have the following information for the smart phone industry. 

The assets, debt, sales, and net profit are $2, $.4, $.5 and $.3 trillion. The industry keeps $250 billion of its profit and pays $50 billion to the shareholders, now. The unlevered bheta is 1.3 and the tax rate is .35. Also, the T bond rate is .02. We want to compute the ROE and the growth rate for the smart phone industry, as well as the industry's market value.

Answer rating: 100% (QA)

Heres how we can compute the ROEgrowth rateand market value for the smartphone industry based on the ... View the full answer