Is the inverse of a firms P/E ratio a reasonable proxy for its equity cost of capital?
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Is the inverse of a firm’s P/E ratio a reasonable proxy for its equity cost of capital?
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The inverse of a firms PricetoEarnings PE ratio also known as the Earnings Yield can be used as a rough estimate or proxy for its equity cost of capit...View the full answer
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Related Book For
International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets
ISBN: 9781119550464
2nd Edition
Authors: Laurent L. Jacque
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