Titan Ltd is considering listing on the local stock exchange. Their industry classification will be “Transport and Stora

[answerhappygod]

Titan Ltd is considering listing on the local stock exchange.
Their industry classification will be “Transport and Storage”. The
average price earnings ratio for this sector is 16. You are
reviewing the company and plan to calculate an expected price
earnings ratio using expected price and expected earnings. The
company’s expected earnings per share is $3.10 and they expect to
maintain a dividend payout ratio of 40%. Assume the expected price
for Titan is $12.50. What is the expected P/E ratio? And what
conclusion can you draw from it?