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This was posted at another place not related to this subject, but he apparently needs the help. Here is what he posted...
I am really struggling with this problem. All the examples in class we went over included the eps and market value. Now in this problem it doesnt have any of that info. It has:
Forecasted industry earnings retention rate--40%
Forecasted industry return on equity--25%
Beta--1.2
Gov't bond yield--6%
Equity risk premium--5%
I need to determine the P/E ratio based on that info. Anybody have any ideas how to get started? Thanks
Anyway, thought I would see if anyone here knew the answer...
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