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You estimate that The ABC Company can grow earnings for 15% per year for the next five years before its growth rate drops to 5%
You estimate that The ABC Company can grow earnings for 15% per year for the next five years before its growth rate drops to 5% per year. The market's expected long-term growth rate is 5% per year. If the fair market P/E is 15, what is the fair P/E for the ABC Company?
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
