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MMLU-Pro / 445 / Estimate the PE ratio for a firm that has the following characteristics:

Problem

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question

Estimate the PE ratio for a firm that has the following characteristics:
Length of high growth = five years
Growth rate in first five years = 25%
Payout ratio in first five years = 20%
Growth rate after five years = 8%
Payout ratio after five years = 50%
Beta = 1.0 
Risk-free rate = T-bond rate = 6%
Cost of equity = 6% + 1(5.5%) = 11.5%
Risk premium = 5.5%
What is the estimated PE ratio for this firm?

category

business

options

  1. 28.75
  2. 25.30
  3. 26.85
  4. 40.00
  5. 18.50
  6. 21.10
  7. 33.80
  8. 30.20
  9. 22.45
  10. 35.60

src

theoremQA-Finance

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Source and history

upstream_id / Original problem ID
445
task_id
a5118f21-5dfc-5a11-9759-f27201922f6c
task_key
default--test--445
task_revision_id
1
config / split
default / test

Official source

initial import