THE GREAT BIG Calculation problem Q5 (Don't Rush it!) ERP is 5.5% and the Risk-Free rate is 5%. Tax is 26% A high growth company reported Earnings per Share of $2.75 in 2000 from which it paid zero dividends. Book Value of debt $1 BN and Book Value of Equity is $3 BN. It currently pays a spread of 20bp over Treasuries on its debt. Total shares outstanding are 63 million. The current share price is $83. Its current beta is 1.25. What is the historical PE P/E.? 1 Mark What is the forwards PE Po/E? 2 Marks What is the forwards PEG ratio? 2 Marks