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(b) Steady-state P/E Step 1: Compare current P/E to Steady-state P/E Current P/E = Price per share/earnings per share 125/5= 25 Steady state P/E =
(b) Steady-state P/E Step 1: Compare current P/E to Steady-state P/E Current P/E = Price per share/earnings per share 125/5= 25 Steady state P/E = 1/Ke(65) Differential = growth opportunity 10= (1/.10...
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
