options: 35 20 30 25

Question 31 (5 points) Planet Research is initiating coverage of a mature manufacturing industry. John Jones, CFA, head of the research department, gathered the following fundamental industry and market data to help in his analysis: Forecast industry earnings retention rate 60% Forecast industry return on equity 25% Industry beta 1.2 Government bond yield 6% Equity risk premium 5% Compute the price-to-earnings (Po/E1) ratio for the industry based on this fundamental data