An analyst gathered the following information about an industry. The industry beta is 0.9. The industry profit margin is 8%, the total asset turnover ratio is 1.5, and the leverage multiplier is 2. The dividend payout ratio of the industry is 50%. The risk-free rate is 7% and the expected market return is 15%. The industry P/E is closest to:
Using the CAPM: ki = 7% + 0.9(0.15 ? 0.07) = 14.2%.
Using the DuPont equation: ROE = 8% × 1.5 × 2 = 24%.
g = retention ratio × ROE = 0.50 × 24% = 12%.
P/E = 0.5/(0.142 ? 0.12) = 22.73.
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发表于 2011-3-30 12:01
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