Jet form corporation traded at a price-to-book ratio of 101


Question: 1. Jet form Corporation traded at a price-to-book ratio of 1.01 in May 1999. Its most recently reported ROCE was 10.1 percent, and it is deemed to have a required equity return of 10 percent. What is your best guess as to the ROCE expected for the next fiscal year?

2. When an analyst forecasts earnings, it must be comprehensive earnings. Why?

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Finance Basics: Jet form corporation traded at a price-to-book ratio of 101
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