L13

A firm has a required rate of return of 0.16 . Its expected ROE is 0.205 and expected earnings per share are 2. If the firm's payout ratio is 0.73 , what is the firm's sustainable or intrinsically justifiable P/ E ratio? 6.362 6.627 6.976 7.297 7.625 Estimate income growth based on: Today, TimeO, is year-end (YE): 2017 What is the 1 year growth rate implied by the difference between the P/ETTM and the forward P/E ? 0.5218 0.5044 0.4893 0.4739 0.4608