Stormy Weather has no attractive investment oppo

Question

Stormy Weather has no attractive investment opportunities. Its return on equity equals the discount rate, which is 10%. Its expected earnings this year are $4 per share. Find the stock price, P/E ratio, and growth rate of dividends for plowback ratios of: (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter the growth rate as a percent rounded to 1 decimal place.)

 

 Plowback Ratios     Stock Price       P/E Ratio  Growth Rate of
 Dividends
  a.Zero           $         %  
  b..40                    %  
  c..90                    %
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