Firm A has a stock market value of 20m (number of shares in issue share price),
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Firm A has a stock market value of £20m (number of shares in issue × share price), while firm B is valued at £15m.
The firms have similar profit histories:
Provide reasons why, despite the same total profit over the last five years, shareholders regard firm A as being worth £5m more (extend your thoughts beyond the numbers in the table).
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