Based on the following information, estimate the justified leading P/E ratio Return on Equity: 18 % Current price per share: $ 58.76 The expected payout ratio: 16.8% EPS for the last reporting period: $6.20 The appropriate discount rate for this risk class: 16.62% Revenue per share: $ 85.10 The expected growth rate in earnings and dividen
Based on the following information, estimate the justified leading P/E ratio Return on Equity: 18 % Current price per share: $ 58.76 The expected payout ratio: 16.8% EPS for the last reporting period: $6.20 The appropriate discount rate for this risk class: 16.62% Revenue per share: $ 85.10 The expected growth rate in earnings and dividen
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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19)
Based on the following information, estimate the justified leading P/E ratio
Return on Equity : 18 %- Current price per share: $ 58.76
- The expected payout ratio: 16.8%
- EPS for the last reporting period: $6.20
- The appropriate discount rate for this risk class: 16.62%
- Revenue per share: $ 85.10
- The expected growth rate in earnings and dividends: 6.09 %.
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