ART Inc. has come out with a new and improved product. As a result, the firm projects an ROE of 25% a year until the end of year 3 and 15% a year afterwards, and it will maintain a plowback ratio of 20%. Its earnings in the coming year, i. e., E1, will be $3 per share. Investors expect a 12% rate of return on the stock. What would be its P0/E1 ratio?

As a result of a labeling mistake at the chemical factory, a farmer accidentally sprays weedkiller rather than fertilizer on half her land. as a result, she loses half of her productive farmland. if the property of diminishing returns applies to all factors of production, she should expect to seea. a decrease in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. b. an increase in the marginal productivity of her remaining land and an increase in the marginal productivity of her labor. c. an increase in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor. d. a decrease in the marginal productivity of her remaining land and a decrease in the marginal productivity of her labor.