Question
ERP is 5.5% and the Risk-Free rate is 5%. Tax is 26% A high growth company reported Earnings per Share of $2.75 in 2000 from
ERP is 5.5% and the Risk-Free rate is 5%. Tax is 26%
A high growth company reported Earnings per Share of $2.75 in 2000 from which it paid zero dividends. Book Value of debt $1 BN and Book Value of Equity is $3 BN. It currently pays a spread of 20bp over Treasuries on its debt. Total shares outstanding are 163 million. The current share price is $83. Its current beta is 1.25.
What is the historical PE?
What is the forwards PE ?
What is the forwards PEG ratio?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
