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Does anyone know how to a calculate the:

Price/Eearning of a stock that has a required return of 15 percent, has an expected growth rate of 8 percent, and a retention ratio of 70 percent.

2007-03-23 16:42:27 · 1 answers · asked by Munch_101 1 in Education & Reference Homework Help

1 answers

The price per share (numerator) is the market price of a single share of the stock. The earnings per share (denominator) is the net income of the company for the most recent 12 month period, divided by number of shares outstanding

P/E Ratio = Price per share (divided by) the Earnings per share (as reported for the last 12 months.

Your question doesn't include the right information to calculate the PE Ratio.

2007-03-23 16:50:21 · answer #1 · answered by Sarge1572 5 · 0 0

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