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Suppose you own a savings account that earned $10 over the past year. Your only transaction...

Suppose you own a savings account that earned $10 over the past year. Your only transaction in the account has been to withdraw $3 on the last day of this 12-month period. The account bears an interest rate of 4 percent per year.
a. What is the value of the account after the $3 withdrawal?
b. What is the trailing P/E and forward P/E for this account?

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Answer #1

Solution : Pg No-0 Given data; The price to Earnings Ratio is used to find the value af a Company by measuring the Current Sh- Ig No- B) The Ple Ratio. is :- It required Return Tsailing ple ratio = ? Required return. = 1 +0.04 0.04 = 26. trailing Ple

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