7. Peninsular Research is initiating coverage of a mature manufacturing industry. John Jones, CFA, head of the research department, gathered the following fundamental industry and market data to help in his analysis: Forecast industry earnings retention rate 40% Forecast industry return on equity 25% Industry beta 1.2 Government bond yield 6% Equity risk premium 5% a. Compute the price-to-earnings (P0/E1 ) ratio for the industry based on this fundamental data. b. Jones wants to analyze how fundamental P/E ratios might differ among countries. He gathered the following economic and market data