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Justified PE An analyst collects the following data for a company: Current stock price = $40 Trailing EPS = $3.70 Most recent dividend declared

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Justified PE An analyst collects the following data for a company: Current stock price = $40 Trailing EPS = $3.70 Most recent dividend declared = $1.85 Dividend growth rate = 8% Required return on equity = 10% Calculate the justified leading, trailing, actual PE and determine if the firm is over-, under-, or fairly valued. a. The justified leading PE is: Number Round your answer to one decimal b. The justified trailing PE is: Number Round your answer to one decimal c. The actual PE is: Number Round your answer to one decimal

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