An analyst gathers the following estimates about a company:
| Earnings retention rate | 40% |
|-------------------------|---------|
| Growth rate | 3% |
If the justified forward P/E is 10 based on the Gordon growth model, the required rate of return is: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
Get started today
Ultimate access to all questions.
Comments
Loading comments...
An analyst gathers the following estimates about a company:
Earnings retention rate
40%
Growth rate
3%
If the justified forward P/E is 10 based on the Gordon growth model, the required rate of return is: