SpaceY Corp. shares are trading at a forward PD (price-to-dividend) multiple of 100, a forward PE multiple of 50 and a PB multiple of 10. The value of SpaceY Corp.'s earnings growth rate implicit in these multiples must be equal to

SpaceY Corp. shares are trading at a forward PD (price-to-dividend) multiple of 100, a forward PE multiple of 50 and a PB multiple of 10. The value of SpaceY Corp.'s earnings growth rate implicit in these multiples must be equal to

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 4PROB

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Question

15. SpaceY Corp. shares are trading at a forward PD (price-to-dividend) multiple of 100, a forward PE multiple of 50 and a PB multiple of 10. The value of SpaceY Corp.'s earnings growth rate implicit in these multiples must be equal to:

Options

20%

10%

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