My 2 cents g = ROE*b If dividend is 0 then b = 1 so g = ROE PEG = PE/g = PE/ROE the only instance where denominator is 0 or undefined is when ROE is 0 so the answer should be C. But if I encounter this question on the exam I will go with B (the book answer)
this kind of question won’t be on the exam since it is confusing,just know how it is confusing is enough…
neilzuo Wrote: ------------------------------------------------------- > this kind of question won’t be on the exam since > it is confusing,just know how it is confusing is > enough… I disagree. This is exactly the type of question that will show up on exam.