Two-to-Ten Dollar Corporation has expected earnings per share of $2.00 in its first year, $4.00 its second

Question:

Two-to-Ten Dollar Corporation has expected earnings per share of $2.00 in its first year, $4.00 its second year, and then $10.00 per year for many more years. Ten Dollar Corporation has expected earnings of $10.00 a share for three years only. Which company would you value higher and why?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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