A P/E built from projected rather than reported earnings is described as:
AFormative
BForward
CForfeit
DForensic
Answer & Solution
Correct answer: B. Forward
1. The trailing version looks backwards at actual results.
2. This version uses estimates of future earnings.
3. It is the forward or leading P/E.
_Source: OpenStax Principles of Finance 2e, Chapter 11, Stocks and Stock Valuation._
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