Question
3. Imagine we have the following information on The Estee Lauder Companies stock: ROE of 12%, current EPS 4.78$, and current DPS 1.66$. The risk-free
3. Imagine we have the following information on The Estee Lauder Companies stock: ROE of 12%, current EPS 4.78$, and current DPS 1.66$. The risk-free rate in the USA is 1.20%, the market risk premium is 5.95% and the beta of the stock is 1.2. If we assume plow back ratio will remain stable, what will the implied PE ratio be?
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
Public Finance
Authors: Laurence S. Seidman
1st Edition
0073375748, 978-0073375748
