Question
Consider the valuation of the two companies if we assume that Company A's earnings of $200,000 will continue to grow at a 15% rate for
Consider the valuation of the two companies if we assume that Company A's earnings of $200,000 will continue to grow at a 15% rate for the next five years and then level off and that Company B's earnings will be $148,000, but will grow at a 33% rate for the next five years before leveling off. Assume a discount rate of 20% -- to reflect the riskiness of both companies
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
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