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Analyzing Cochlear limited Calculate the following ratios for financial year ending 30 June 2019. [7 marks] a)Forward Price-Earnings ratio and Trailing Price-Earnings ratio. What do

Analyzing Cochlear limited

Calculate the following ratios for financial year ending 30 June 2019. [7 marks]

  1. a)Forward Price-Earnings ratio and Trailing Price-Earnings ratio. What do these two ratios tell you about your company? [3 marks]
  2. b)If the stock was fairly priced according to the constant growth dividend discount model, what would be its Forward Price-Earnings ratio? [1 mark]
  3. c)Find the average industry P/E ratios for your company of your choice. Compare your estimated Forward P/E ratios for your company with the industry average P/E ratio. What conclusions can you make? [3 marks]

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