Question
Calcuate Company A P/E ration if expected return is 10% p.a and return on Goverment bonds is 4%. Expected earnings per share $18 Market beta
Calcuate Company A P/E ration if expected return is 10% p.a and return on Goverment bonds is 4%.
Expected earnings per share $18
Market beta 0.6
Earnings per share retained by from 40%
Growth rate in earnings per share 0.07
Do we use CAPM forumla to calcuate this ?
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Business And Personal Finance
Authors: McGraw-Hill
1st Edition
0078945801, 9780078945809
