Question: What is the PEG, the forward P/E divided by the expected growth rate, for ABC? Use the constant-growth DDM. March 9, 2027 ABC E(E 1

What is the PEG, the forward P/E divided by the expected growth rate, for ABC? Use the constant-growth DDM.

March 9, 2027

ABC

E(E1)

1

P0

12

ROE

11%

Payout Ratio

70%

Cost of Equity r

10%

Question 7 options:

2.41

2.73

1.87

3.64

2.08

1.39

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