As part of your duties at Apex Financial Ltd. you have been asked to review the analysis

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As part of your duties at Apex Financial Ltd. you have been asked to review the analysis carried out by a rival company—Prime Group—of the WX Media Company. WX has had a constant P/E ratio for the past five years. Prime’s analyst has made the following statement: “WX’s constant P/E ratio is due to zero growth in its earnings, and therefore, WX is not a good investment.” Comment on Prime's statement.

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Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

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