An analyst collects the following data for a company: Current stock price = $56 Trailing EPS...
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An analyst collects the following data for a company: Current stock price = $56 Trailing EPS = $4.55 . Most recent dividend declared = $2.27 . Dividend growth rate = 3% Required return on equity = 8% Calculate the justified leading, trailing, actual PE and determine if the firm is over-, under-, or fairly valued. a. The justified leading PE is: . ● . Round your answer to one decimal b. The justified trailing PE is: Round your answer to one decimal c. The actual PE is: An analyst collects the following data for a company: Current stock price = $56 Trailing EPS = $4.55 . Most recent dividend declared = $2.27 . Dividend growth rate = 3% Required return on equity = 8% Calculate the justified leading, trailing, actual PE and determine if the firm is over-, under-, or fairly valued. a. The justified leading PE is: . ● . Round your answer to one decimal b. The justified trailing PE is: Round your answer to one decimal c. The actual PE is:
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Related Book For
Equity Asset Valuation
ISBN: 978-0470571439
2nd Edition
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
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