Question: 2. The following table provides summary data for Target on May 2, 2014, per finance.yahoo.com (in billions). Analysts often use the observed PB ratio to

2. The following table provides summary data for Target on May 2, 2014, per finance.yahoo.com (in billions). Analysts often use the observed PB ratio to infer market expectations regarding a companys future performance based on assumptions. Assuming that the markets expectation of Targets future ROE is consistent with its past performance and its discount rate is expected to be 7.5%, compute Targets implied future growth rate.
Target
Market value of equity $39.30
Book Value of Equity $16.49
ROE 11.46%

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