Question
A firm has current earnings of $3.00 and it pays 60% of earnings out as dividends. The firm's dividend growth rate is expected to be
A firm has current earnings of $3.00 and it pays 60% of earnings out as dividends. The firm's dividend growth rate is expected to be 5% per year indefinitely. The required return on equity is 15%. Calculate the firm's justified forward and trailing P/E ratios.
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Financial Theory Perspectives From China
Authors: Xingyun Peng
1st Edition
1938134311, 1938134338, 9781938134319, 9781938134333
