A firm has an earnings retention ratio of 40%. The stock has a market capitalization rate of 15% and an ROE of 18%. What is the stock's P/E ratio?
A. 12.82
B. 7.69
C. 8.33
D. 9.46
Answer: B
A. 12.82
B. 7.69
C. 8.33
D. 9.46
Answer: B