boon57
04-20-2008, 09:31 PM
hi! I've got a problem reading "Real Money". The Walgreens and Rite aid problem, he gives that walgreens costs $30 and at a P/E ratio of 25 and growth rate of 15%while rite aid costs $5 at a P/E ratio of 40 and growth rate of 12.5%. How did he get the earnings at 1.3 and .26 for walgreens and rite aid respectively. by my calculations, without the growth rate, the earnings are 1.2 and 0.13 for walgreens and rite aid respectively. so, how did he do the calculations. Please help. Thanks.