Company Oceanic Airlines Trans American Airlines South Pacific Air Atlantic Airways O Atlantic Airways; 24 O Trans American Airlines; 12 O Oceanic Airlines; 21 Payout Rate (%) O South Pacific Air; 26 21 18 13 16 Required Return (%) 8.0 9.0 4.0 7.0 Growth Rate (%) 7.0 7.5 You are an analyst covering the airline industry. Your manager gives you data on a variety of companies, provided in the table above. What company has the largest P/E constant, and what is its value? 

Answer rating: 100% (QA)

To calculate the PE constant for each company we use the formula PE Constant Payout Rate Growth Rat... View the full answer