21. Growth opportunities (S4.5) Alpha Corps earnings and dividends are growing at 15% per year. Beta Corps
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21. Growth opportunities (S4.5) Alpha Corp’s earnings and dividends are growing at 15% per year. Beta Corp’s earnings and dividends are growing at 8% per year. The companies’ assets, earnings, and dividends per share are now (at date 0) exactly the same. Yet PVGO accounts for a greater fraction of Beta Corp’s stock price. How is this possible? (Hint: There is more than one possible explanation.)
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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