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. Note: ROE=PB/TrailingPE. Round answers to one decimal place (ex; 0.2345=23.5%) Which company do you believe the market expects to have the highest future ROE? The market is most likely expecting future ROE to be highest for PPG industries since it has the highest ROE. The market is most likely expecting future ROE to be highest for Hershey since it has the highest PB ratio
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