An analyst gathers the following information about a company:
| Next year's EPS forecast | $0.60 |
|--------------------------|-------|
| Dividend payout ratio | 45% |
| Growth rate | 7% |
Using the Gordon growth model, if the analyst's required return is 10%, the justified forward P/E for the company is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An analyst gathers the following information about a company:
Next year's EPS forecast
$0.60
Dividend payout ratio
45%
Growth rate
7%
Using the Gordon growth model, if the analyst's required return is 10%, the justified forward P/E for the company is closest to:
