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I am analyzing the stock fundamentals of a company. I have calculated forward P/E ratios for this company. What is the impact on the P/E
I am analyzing the stock fundamentals of a company. I have calculated forward P/E ratios for this company. What is the impact on the P/E ratio if:
a. The risk of this company (beta) drops.
b. The growth rate of earnings and dividends increases
c. The equity risk premium increases
Include a brief explanation for each of your answers.
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