The Market-Capitalization Rate on the Stock of Flexsteel Company Is

Multiple Choice

The market-capitalization rate on the stock of Flexsteel Company is 12%. The expected ROE is 13%, and the expected EPS are $3.60. If the firm's plowback ratio is 75%, the P/E ratio will be

A) 7.69.
B) 8.33.
C) 9.09.
D) 11.11.
E) None of the options are correct.