An investor gathers the following data. | Year | Earnings per Share ($) | Dividends per Share ($) | ROE | |------|------------------------|--------------------------|-----| | 4 | 3.20 | 1.92 | 12% | | 3 | 3.60 | 1.80 | 17% | | 2 | 2.44 | 1.71 | 13% | | 1 | 2.50 | 1.60 | 15% | To estimate the stock's justified forward P/E, the investor prefers to use the compounded annual earnings growth and the average of the payout ratios over the relevant period (i.e., Year 1-Year 4). If the investor uses 11.5% as her required rate of return, the stock's justified forward P/E is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz

An investor gathers the following data.

Year Earnings per Share ($) Dividends per Share ($) ROE
4 3.20 1.92 12%
3 3.60 1.80 17%
2 2.44 1.71 13%
1 2.50 1.60 15%

To estimate the stock's justified forward P/E, the investor prefers to use the compounded annual earnings growth and the average of the payout ratios over the relevant period (i.e., Year 1-Year 4).

If the investor uses 11.5% as her required rate of return, the stock's justified forward P/E is closest to:

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