Question
a. Constant growth and P/E ratio. Thermo Fisher Scientific (TMO) anticipates a return on new investments (ROE*) of 10%. EPS next year is projected at
a. Constant growth and P/E ratio. Thermo Fisher Scientific (TMO) anticipates a return on new investments (ROE*) of 10%. EPS next year is projected at $8.60 and the dividend payout rate is 25%. Compute the sustainable growth rate (g) for TMO
b. Compute the PV of 1 share of TMO if the required return is 12%.
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The Certified Lease And Finance Professionals Handbook
Authors: Deborah Reuben, Certified Lease & Finance Professionals, Equipment Finance Industry Experts
6th Edition
171743388X, 978-1717433886
