Question 1 a firms earnings are expected to grow at a rate, Ask an Expert

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Question: 1. A firms earnings are expected to grow at a rate equal to the required rate of retum for its equity, 12 percent. What is the trailing PIE ratio? What is the forward PIE ratio?

2. A PIE ratio for a bond is always less than that for a stock. Correct?

3. Why might an analyst refer to a leading (forward) PIE ratio rather than a trailing PIE ratio?

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