Question: Determining ROE and Assessing Market Expectations The PB, trailing PE, and forward PE data follow for four companies. Determine the current ROE for each company.
Determining ROE and Assessing Market Expectations
The PB, trailing PE, and forward PE data follow for four companies. Determine the current ROE for each company.
| Company | PB | Trailing PE | Forward PE | |
|---|---|---|---|---|
| Apple | 4.18 | 13.64 | 11.33 | |
| Outerwall | 3.39 | 11.35 | 11.94 | |
| PPG Industries | 5.38 | 8.82 | 20.10 | |
| Hershey | 16.54 | 28.24 | 23.65 |
Round answers to one decimal place (ex: 0.2345 = 23.5%)
| Company | ROE | |
|---|---|---|
| Apple | ? | |
| Outwall | ? | |
| PPG Industries | ? | |
| Hershey | ? |
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