Question
Market analysts expect the earnings per share of JNM Ltd to be $1.80 next year. The earnings per share are expected to grow at 5%
Market analysts expect the earnings per share of JNM Ltd to be $1.80 next year. The earnings per share are expected to grow at 5% p.a. forever and the firm typically retains 60% of its earnings. Analysts believe that this policy will continue in the foreseeable future. If investors require a return of 9%, the company's expected (or forward) price-to-earnings ratio will be closest to:
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
