The lagging pe ratio is expected to increase up to 25 in


A compay is expected to have earnings of $1.26 per share in one year, $1.71 per share in two years, $2.36 per share in three years, and $2.82 in four years. The dividend payout ratio is also expected to remain at 40% over the next four years. The lagging P/E ratio is expected to increase up to 25 in three years. If the required rate of return is 10%, what is a fair value for this stock today?

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Financial Management: The lagging pe ratio is expected to increase up to 25 in
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