What is the company forecasted growth using roe

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You forecast a company to have a ROE of 15%, a dividend payout ratio of 30%. What is the company’s forecasted growth using ROE and Retained earning approach? If you also know currently the company has a price of $30, and you forecast the company to have a $1 earnings per share. If firms with similar risks in the industry have a PE ratio of 27 with an estimated earnings growth rate of 12%, is the company overvalued or undervalued based on PEG approach?

Reference no: EM131535401

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