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12. Seminole Research is initiating coverage of a mature manufacturing industry. Nancy Nole, CFA, head of the research department, gathered the fundamental and market data

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12. Seminole Research is initiating coverage of a mature manufacturing industry. Nancy Nole, CFA, head of the research department, gathered the fundamental and market data below to help with the analysis. Using the information provided, compute the PE ratio. Please show the formula and your calculations. (LO13-3) Forecast industry earnings retention rate Forecast industry return on equity Industry beta 40% 25% 1.2 6% Government bond yield Equity risk premium 5%

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