Question
CD Bargain Barn is forecasting earnings per share of $3.35 next year. Its investors require a return of 16.0%. No growth value = $20.9375 PVGO
CD Bargain Barn is forecasting earnings per share of $3.35 next year. Its investors require a return of 16.0%.
No growth value = $20.9375
PVGO = $11.062
What is the implied P/E ratio for CDs stock? (Round your answer to 2 decimal places.)
Implied P/E ratio = Po / E1 = 1 / K (1 +PVGO / (E1 / K)
Po = E1 / K + PVGO
Implied Ratio = ?
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Fundamentals Of Futures And Options Markets
Authors: Jonn C. Hull
8th International Edition
0133382850, 9780133382853
