Sarif currently reinvests 28 of its earnings each year and


Shareholders in Sarif Industries require a rate of return on their investment of 11%. Investors expect Sarif to have EPS one year from now of $4.77. Sarif currently reinvests 28% of its earnings each year and its dividends are expected to grow at an annual rate of 5% in perpetuity.

If shares in Sarif Industries are priced correctly, its P/E ratio will be _________.

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Finance Basics: Sarif currently reinvests 28 of its earnings each year and
Reference No:- TGS02761888

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