Based on the following information, estimate the justified leading P/E ratio    Return on Equity: 18 % Current price per share: $ 58.76 The expected payout ratio: 16.8%  EPS for the last reporting period: $6.20 The appropriate discount rate for this risk class: 16.62%  Revenue per share: $ 85.10 The expected growth rate in earnings and dividen

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
Author:MOYER
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Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 17P
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19)

Based on the following information, estimate the justified leading P/E ratio 

 

  • Return on Equity: 18 %
  • Current price per share: $ 58.76
  • The expected payout ratio: 16.8% 
  • EPS for the last reporting period: $6.20
  • The appropriate discount rate for this risk class: 16.62% 
  • Revenue per share: $ 85.10
  • The expected growth rate in earnings and dividends: 6.09 %. 
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