Question
Ivan Industries, Inc. (III) has current earnings (E0) of $6.60/share and expects earnings to grow at 5% per year indefinitely. IIIs forward looking P0/E1 ratio
Ivan Industries, Inc. (III) has current earnings (E0) of $6.60/share and expects earnings to grow at 5% per year indefinitely. IIIs forward looking P0/E1 ratio is 32. What would IIIs P0/E1 ratio be if it could increase growth to 7% per year? How much would that increase the value of a share of III stock?
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The Compensation Committee Handbook
Authors: James F. Reda, Stewart Reifler, Michael L. Stevens
4th Edition
1118370619, 978-1118370612
