Calculate the expected share price and the p-e ratio

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Q1. A firm projects an ROE of 18%; it will maintain a payout ratio of 40%. The firm is expecting earnings of R3 per share and investors expect a return of 15% on the investment. Calculate the expected share price and the P/E ratio of the firm.

Q2. Discuss five (5) types of preference shares.

Q3. List the disadvantages of using the PE ratio.

Reference no: EM133106688

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