I need little help in solving following question. Please guide me where to start from?
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Regards,
-- Start-Up Industries is a new firm that has raised $240 million by selling shares of stock. Management plans to earn a 25% rate of return on equity, which is more than the 15% rate of return available on comparable-risk investments. Half of all earnings will be reinvested in the firm. |
| What will be Start-Up's ratio of market value to book value |
Regards,
Misbah Yousuf
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