Question
Boucher Service Company's EPS is $3.00. The payout rate is 60%, the growth rate of earnings and dividends is 4%, and required return on equity
Boucher Service Company's EPS is $3.00. The payout rate is 60%, the growth rate of earnings and dividends is 4%, and required return on equity is 7%. Boucher's ROE is 10% and the firm's net profit margin (NPM) is 5%. Assume the constant growth model is appropriate.
What is Boucher's justified trailing P/E ratio (P0/E0)?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
6th Canadian edition
1259453146, 978-1259453144
