We often use the P/E ratio model with the firm's growth rate to estimate
A) required rates of return.
B) inflation.
C) a stock's current price.
D) a stock's future price.

Question

Quizplus · Accepted Answer

The P/E ratio model, when combined with the firm's growth rate, is often used to estimate a stock's future price by projecting future earnings and applying the P/E ratio to those earnings.

We Often Use the P/E Ratio Model with the Firm's