Q9

Slowmart Inc. is a super stable, dividend-paying firm that is expected to pay out 0.6 of its expected earnings per share of 1.5 next year as dividends. If the earnings are expected to grow 3% a year in perpetuity and the cost of equity is 9% What forward(future/leading) PE ratio would you expect the firm to have? What current(trailing) PE ratio would you expect the firm to have