Question: Kings Corp. has a MV/BV =9 a Buffett Ratio = 8 and a PEG ratio = 1.5, with an estimated growth rate (g) of 5.

Kings Corp. has a MV/BV =9 a Buffett Ratio = 8 and a PEG ratio = 1.5, with an estimated growth rate (g) of 5. What is QC Corp.'s P/E ratio?

13.5

7.5

Residual Income Valuation - Grand Central Video's accountant forecasts the following Net Income for the next two years:

Year

2023 $2,640,000

2024 $2,950,000

She estimates that Grand Central's Re = 10%, and its growth rate g=5%. The company does not give a dividend . If its book value is $12,000,000, what valuation does the accountant place on the company?

Please choose the answer closest to your calcualtion.

	A.	$22,132,000
	B.	$24,669,000
	C.	$36,669,000
	D.	$24,073,000

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