Homework SourseThe present sent value of future cash flow per share is 45
The present sent value of future cash flow per share is $ 45 for janassen corporation. Then current earnings per share is $ 9.00 the implied price earnings ratio is ?
A. 5
B 10
C 15
D none of the above
The present sent value of future cash flow per share is $ 45 for janassen corporation. Then current earnings per share is $ 9.00 the implied price earnings ratio is ?
A. 5
B 10
C 15
D none of the above
A. 5
B 10
C 15
D none of the above
Solution
Implied PE ratio = PV of CFs / EPS
= $45/$9
= $5
Hence, Option \"A\" is correct.
