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![]() Peninsular Research is initiating coverage of a mature manufacturing industry. John Jones, CFA, head of the research department, gathered the following fundamental industry and market data to help in his analysis: <image 1> Compute the price-to-earnings ratio for the industry based on this fundamental data | The price-to-earnings ratio is calculated as follows: Difficulty: Medium Subfield: Financial Marketing |
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"content": " The price-to-earnings ratio is calculated as follows:\n\n$$\\frac{P_0}{E_1} = \\frac{1.2(6 + 5)}{.25(1.2)} = 33.6$$"
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