A P/E multiple could be high relative to the S&P 500 Index because its high growth...

 

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A P/E multiple could be high relative to the S&P 500 Index because its high growth rate justifies it. You notice a stock that has an assumed growth rate of 5.43% with a dividend payout ratio of 64.9% and a required return of 12.7%. What is the justified forward P/E for this company? State A P/E multiple could be high relative to the S&P 500 Index because its high growth rate justifies it. You notice a stock that has an assumed growth rate of 5.43% with a dividend payout ratio of 64.9% and a required return of 12.7%. What is the justified forward P/E for this company? State

Answer rating: 100% (QA)

To calculate the justified forward pricetoearnings PE ratio using the Gordon Grow... View the full answer