Determining the traditional plowback ratio

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IBM has a ROE of 9% and a beta of 1.25. It plans to maintain indefinitely its traditional plowback ratio. This year's EPS were $3 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14% and T-Bill currently offer a 6% return. The leadingP/E is 3.33 and the stock is sold at $10.60. What is it's traditional plowback ratio?

Reference no: EM132515902

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