Question: 1. For a firm with a normal trailing PIE ratio, expected future residual earnings must be the same as current residual earnings. Correct?
2. Can a firm have a high PIE ratio yet a low PIB ratio? How would you characterize the growth expectations for this firm?
3. Firms with high unsustainable earnings should have low trailing P/E ratios. Is this correct?
4. Why would we expect a firm with a large write-off to have a high trailing PIE?