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Please help & show work please (a-c) Assume that the Gordon model (constant non-zero growth rate of dividends forever) applies to stock JBS. The current

Please help & show work please (a-c) image text in transcribed
Assume that the Gordon model (constant non-zero growth rate of dividends forever) applies to stock JBS. The current dividend is D4=52 and the forecasted growth rate of dividends is g=5%. The forward earnings over the next twelve months are E,=53 per share The estimated market capitalization rate (cost of equity) is 12% The retention ratio for next year is the long-term retention rate. a) Based on the Gordon DDM (dividend discount model), write the expression for the justified forward price-earnings ratio (E1P3, that is, derive the general expression for the forward P/E ratio based on forecasted fundamentals. b) Given your answer in (a), calculate the justified forward price-earnings ratio for JBS. 18 c) If the actual forward P/E ratio for JBS is 7, determine whether JBS's stock is over(underjvalued on a forward P/E basis. Provide a brief but adequate explanation

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