Question
A company is expected to grow earnings by 4.2% per year forever. The firm's cost of equity is 9.2% and the firm's ROE is 12%.
A company is expected to grow earnings by 4.2% per year forever. The firm's cost of equity is 9.2% and the firm's ROE is 12%. What should the firm's forward P/E be?
Step by Step Solution
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Step: 1
To calculate the firms forward PE ratio we can use the Gord...
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
