Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. Kraft Foods (KFT) has the following information. ** Current Price Pm = $29.92 Trailing PE Pt = 14.7 Forward PE Pf = 12.9 PEG
1. Kraft Foods (KFT) has the following information. **
Current Price Pm = $29.92
Trailing PE Pt = 14.7
Forward PE Pf = 12.9
PEG = 2.03
ROE = 12.54
Dividend Yield Dy = 3.9%
Market Risk Premium MRP = 8%
= .7
Plowback ratio b = .43
Rf = 3%
- What are the current earnings?
- What is the market estimate for forward earnings?
- What is the sustainable growth rate?
- What is the estimated PEG growth rate?
- What is the cost of equity capital using CAPM model?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started