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The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings (i.e., at a p/e ratio of 20). What would
The common stock of Securetech Corporation consistently sells at a market price of 20 times earnings (i.e., at a p/e ratio of 20). What would be the most likely effect of a 10 cent increase in Securetech's basic EPS? how?
All things being equal, if investors expect earnings to increase substantially from current levels, the price/earnings ratio will ? and why?
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