Shares in Elon Must Inc. are currently trading at a forward P/D (price-to-dividend) ratio of 50, a forward P/E ratio of 40 and a P/B ratio of 30. What is Elon Must Inc.'s implied cost of equity (re) equal to

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
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12. Shares in Elon Must Inc. are currently trading at a forward P/D (price-to-dividend) ratio of 50, a forward P/E ratio of 40 and a P/B ratio of 30. What is Elon Must Inc.'s implied cost of equity (re) equal to:

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65%
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