Question
Calculate the leading P/E ratio, given the following information: retention ratio = 0.68, required rate of return = 10 percent, expected growth rate = 5
Calculate the leadingP/Eratio, given the following information: retention ratio = 0.68, required rate of return = 10 percent, expected growth rate = 5 percent.(Round answer to 2 decimal places, e.g. 1.61.)
I got 0.64 as my answer, is this correct?
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Financial Management Concepts and Applications
Authors: Stephen Foerster
1st edition
013293664X, 978-0132936644
