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Current share price of Telco Inc. is $35. Analyst forecasted net profit for this company in FY2021 is $234 Million. The company has 85
Current share price of Telco Inc. is $35. Analyst forecasted net profit for this company in FY2021 is $234 Million. The company has 85 million shares outstanding. Based on this data, complete the following table (rounding up numbers to 2 decimal places 0.xx). Based on earnings growth in the past three years and P/E (FY1), which share would you like to invest? Explain your reasons. (1+2 = 3 marks) Company Earnings growth Price-to-Earnings (P/E) ratio Telco Inc. JB Hi-Fi Myer 12% 6.5% 3% 12.1 9.8
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
