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please help with Qb on the Forward Price-to-Earnings ratio Company 2 is an all-equity financed firm. It has the following financial information for the past
please help with Qb on the Forward Price-to-Earnings ratio
Company 2 is an all-equity financed firm. It has the following financial information for the past 5 years Company 2 usually publishes its financial statements one month after the end of the year. In other words, the public would only know the earnings for the year one month after the year end. In the last 5 years, Company 2 has paid out 50% of its earnings as dividend. Required (b) Determine the Forward Price to Earnings ratio (Forward P/E ) for each of the last five years whenever the above data permits. Comment on how well the Forward P/E can be used in practice. (8 marks) Step by Step Solution
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