Question
Pedro wants to invest in Stock A, which is forecasted to earn a net income of P10 per share. Stock A's current P/E Ratio
Pedro wants to invest in Stock A, which is forecasted to earn a net income of P10 per share. Stock A's current P/E Ratio is 10x. Industry average P/E Ratio is 17x. Without considering stock transaction costs, what would be the expected capital gain of Pedro if he were to invest in Stock A?
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