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hello need help for this question thanks a lot for the help! (will give review) Best Solutions Ever Inc. is an uprising star in the

hello need help for this question thanks a lot for the help! (will give review) image text in transcribed
Best Solutions Ever Inc. is an uprising star in the telecommunication equipment solution sector. The firm is expected to have a return on equity of 18%, in each of the following 5 years (year 1 to 5 including), after which the firm is expected to have a stable growth in their earnings of 4,6% a year (year 5+1 to Infinity) with an expected ROE of 12.1%. During the high growth period (year 1 to 5 including), the firm's dividend payout ratio is expected to remain at the current level. Currently, the firm pays a dividend of $0.85 per share on earnings per share of $1.63. The cost of equity during the high growth period (year 1 to 5 including) is 15.19% and is expected to drop to 9.92% when the firm transitions in stable growth starting year 5 +1 and is expected to remain at this level. Assume growth is a function of (1 - dividend payout rate) " ROE and everything which is not payed out as dividend of earnings per share is retained in the firm. Round to two digits after the decimal. Estimate the firm's PE ratio based on fundamentals

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