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per annum. What should the company do? Show appropriate computations. (8 marks) b) Companies X and Y have P/E ratios of 10 and 15 respectively.

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per annum. What should the company do? Show appropriate computations. (8 marks) b) Companies X and Y have P/E ratios of 10 and 15 respectively. i. What information is contained in P/E ratios? (3 marks) ii. Which firm X or Y would you prefer to invest in? Why

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