Castles in the Sand generates a rate of return of 20% on its investments and maintains...

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Castles in the Sand generates a rate of return of 20% on its investments and maintains a plowback ratio of 30. Its earnings t

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4 a. Answers Growth rate = RoEx pluwe Back ratio = 207.80.30 Growth rale 61 Po — о =) е у С-301- k-g T121:-67 price of show. PERatio - mps 56.67 - EPS. PE yuno a 11.667 , b. When plow bacl raho is reduced to 0.20 growth rate = - growth ran. ROEx plau

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