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Justified PE An analyst collects the following data for a company: Current stock price = $ 4 0 Trailing EPS = $ 3 . 7
Justified PE
An analyst collects the following data for a company:
Current stock price $
Trailing EPS $
Most recent dividend declared $
Dividend growth rate
Required return on equity
Calculate the justified leading, trailing, actual PE and determine if the firm is over under or
fairly valued.
a The justified leading PE is:
Round your answer to one decimal
b The justified trailing PE is:
Round your answer to one decimal
c The actual PE is:
Round your answer to one decimal
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