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1. The PE ratio combined with forecasted earnings per share to forecast stock price. So how would you determine what the growth rate is to work into your application of the formula?
2. If the government and the global markets decided to change to one world currency but it was not as convenient to carry would you still be inclined to consider it your preference to carry?
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This solution discussed the PE ratio and one world currency.
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1. The PE ratio combined with forecasted earnings per share to forecast stock price. So how would you determine what the growth rate is to work into your application of the formula?
You determine the growth rate based off what has happened in the past. For example, the earnings that were done for the first five years, one can predict from there what occurred and determine if there is something that needs changed for the future based off the current trends. Within the application itself, this may mean a simple addition or multiplication based off how the economy is doing at that particular time. However, one has to consider that this is a forecast, and cannot come true until it ...
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