In order to predict an industry price-earnings ratio,the following estimate(s)is/are needed:

A) industiy dividend payout ratio
B) industiy required rate of return
C) industry growth rate
D) all of the above

Question

In order to predict an industry price-earnings ratio,the following estimate(s)is/are needed:

A) industiy dividend payout ratio
B) industiy required rate of return
C) industry growth rate
D) all of the above

Quizplus · Accepted Answer

The prediction of an industry price-earnings ratio (P/E)requires estimates of the industry dividend payout ratio,required rate of return and the growth rate in EPS.

In Order to Predict an Industry Price-Earnings Ratio,the Following Estimate(s)is/are