The price-earnings ratio and the price-book value ratio

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Look up a publicly traded company of your choice (look under the investor section of their website or go to free Edgar online to get information) and calculate: a. The price/earnings ratio b. The price/book value ratio c. The price/revenue ratio Note: Use Dividend Valuation Model for Questions 1 and 2 Value common stock Without growth = Div(1) /R Value Common Stock With growth in dividends = Div(1)/(R-G) Div(1) = dividend next period = Div(0)*(1+G) Div(0) = Dividend now G= annual growth rate R= required rate of return

Reference no: EM131054668

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