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Firm A is currently in steady state and is growing at 6% per year. The firm just recognized $25 in earnings per share. The firm

Firm A is currently in steady state and is growing at 6% per year. The firm just recognized $25 in earnings per share. The firm is currently selling at a 5% discount of $100 per share.

1. What is the justified current P/E ratio?

2. what is the justified forward P/E ratio?

3. What is the Current P/E ratio?

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