FREE Trial

A firm's earnings are expected to grow at a rate equal to the required rate of return for its equity,

Question:

A firm's earnings are expected to grow at a rate equal to the required rate of return for its equity, 12 percent. What is the trailing P/E ratio? What is the forward P/E ratio?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 37% (8 reviews)

The trailing P E …View the full answer


answer-question
Answered By
tutor-profile-image
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice. I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+ 2+ Reviews 10+ Question Solved
Related Book For  answer-question
Financial statements

Financial statements

ISBN: 978-007802531

5th Edition

Authors: Stephen Barrad

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: March 17, 2012 06:17:07
See More Questions

Students also viewed these Accounting questions

Q:
A firms earnings and dividends are expected to grow at a constant rate indefinitely, and it is expected to pay a dividend of $8.75 per share next year. Expected EPS and BVPS next year are $12 and...
A:
NI EPS 12 E BVPS 48 g bx......
Q:
What factors determine the required rate of return for any security?
A:
The factors that determine the required rate of return for a security incl......
Q:
What two components make up the required rate of return on common stock?
A:
The two components that make up the required rate of......
Q:
Fletcher, Inc. disposes of under- or over-applied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $619,000 in a year when...
A:
D 637 900 1 752 100 Reported cost of goods s......
Q:
Matt Patterson died in early 2013 with a $4.5 million gross estate and no deductions other than a potential marital deduction. He bequeathed all his property to his spouse, Nancy, with the provision...
A:
Nancy Nancy Disclaims Does Not Disclaim Matt s gross estate 4 500 000 4 500 000 Marital deduction 0......
Q:
Go to an Internet search engine (e.g., Google) and type in "project communication plan." Check three or four that have ".gov" as their source. How are they similar or dissimilar? What would be your...
A:
Hence for the final analysis we can say that they......
Q:
Use indirect truth tables to determine whether the following arguments are valid or invalid.
A:
To determine the validity of the argument EvF E using indirect truth tables we need to construct a......
Q:
The following information is provided for Techno-World, a company specializing in providing Internet technology assistance for clients: Perform a horizontal analysis of this balance sheet and...
A:
After performing the analysis the accounts that raise questions are Accounts Receivable and Retained......
Q:
UP Partnership has been in business since 1965, located in the upper peninsula of Michigan, near the Sault Ste. Marie area. It is owned 50-50 by Aaron and Caitlin and operates a fishing camp and...
A:
UP Partnership s share of LP Partners liabilities The UP Partnership s share of LP Partners liabilities is determined by its partnership interest In t......
Q:
Suppose you are a managerial accountant or cost analyst for Donut Desire. You have been asked to make a presentation to management about the status of the company's utility costs. Refer to Exhibits...
A:
Click to View...
Q:
The following formula is of ten used to value shares, where Earn, is forward earnings, r is the cost of capital, and g is the expected earnings growth rate. Value of equity = Eam1/r g Explain why...
A:
This formula capitalizes earnings at the ex dividend earni......
Q:
The normal forward P/E and the normal trailing P/E always differ by 1.0.Explain the difference.
A:
The difference is that for the trailing P E one more......
Q:
Pierce, a married individual, received the following in 20X14: Considering only the above, what is Pierces 20X14 gross income? a. $49,800 b. $34,800 c. $30,000 d. $24,800 Worker's compensation award...
A:
To calculate Pierce s 20X14 gross income you need to add up all the......
Q:
(a) How does a system of standard costing enable a business to operate on the principle of management by exception? (b) Some of the following materials and labour variances have been wrongly...
A:
a A system of standard costing enables a business to operate on the principle of management by exception by providing a benchmark or standard against......
Q:
The balance sheet for Cremore Ltd at 31 December 20X3 is given below (000): Required: Using the above information, calculate the gearing adjustment percentage: Plant and machinery Cost Depreciation...
A:
To calculate the gearing adjustment percentage we need to determine the gearing ratio for both 20X3......
Q:
The summarised balance sheet of Newland Traders at 30 May 20X7 was as follows: Selling and materials prices at 30 May 20X7 provide for a gross profit at the rate of 25 per cent of sales. The...
A:
1 Sales and Purchases Budgets i Sales for the period at current prices will be 800 000 Sales for the months of September and October will each be twice those of the sales in each of the other months S......
Q:
Paul Wagtail started a small manufacturing business on 1 May 20X8. He has kept his records on the double entry system, and has drawn up a trial balance at 30 April 20X9 before attempting to prepare...
A:
a Manufacturing Trading and Profit Loss Accounts for the year ended 30 April 20X9 Marginal Costing Method Particulars Amount Sales 464 360 Opening Stock of Finished Goods Add Cost of Production WIP 44......
Q:
Vale Manufacturing started in business on 1 April 20X3, and incurred the following costs during its first three years. Required: (a) Prepare a statement showing the gross profit for each of the three...
A:
a Gross Profit for Each Year i Marginal Costing Approach to Valuing Stock To calculate the gross profit using the marginal costing approach we ll consider only variable manufacturing costs direct mate......
Q:
Unless stated otherwise, B is a basis for a vector space V. Justify each answer. (T/F) In some cases, a plane in R 3 can be isomorphic to R 2 .
A:
True If the plane passes through the origin as in Exampl......
Q:
Design a circuit which negative the content of any register and store it in the same register.
A:
I m taking output of resister as 4 bit so each bit wi......
Q:
Donte Company, a retail store, has a receivables turnover of 4.5 times. The industry average is 12.5 times. Does Donte have a collection problem with its receivables?
A:
Donte Company does not necessarily have a problem The rec......
Q:
Donte Company, a retail store, has a receivables turnover of 4.5 times. The industry average is 12.5 times. Does Donte have a collection problem with its receivables?
A:
Donte Company does not necessarily have a problem The rec......
Q:
Which ratios should be used to help answer the following questions? (a) How efficient is a company in using its assets to produce sales? (b) How near to sale is the inventory on hand? (c) How many...
A:
a Asset turnover b I......
Java 2 For Dummies 1st Edition - ISBN: 0764507656 - Free Book