Question
(15 points question total) Devs Inc. is currently trading at a forward P/D (price-to-dividend) ratio of 25, a forward P/E ratio of 20, a P/B
(15 points question total) Devs Inc. is currently trading at a forward P/D (price-to-dividend) ratio of 25, a forward P/E ratio of 20, a P/B ratio of 4 and a P/S ratio of 3. Please answer the following questions:
(a) (5 points) What is Devs Inc.'s PEG ratio (PE divided by g expressed in %) equal to?
(b) (5 points) What is Devs Inc.'s net prot margin (NPM) equal to?
(c) (5 points) What is Devs Inc.'s required rate of return (re) equal to?
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Derivatives Markets
Authors: Robert McDonald
3rd Edition
978-9332536746, 9789332536746
