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The forecasted earnings-per-share of CPY A and CPY B for Years 1 thru 6 are given in the table below: CPY A CPY B Year
The forecasted earnings-per-share of CPY A and CPY B for Years 1 thru 6 are given in the table below:
CPY A | CPY B | |
Year 1 | 10.16 | 4.6 |
Year 2 | 10.48 | 5.01 |
Year 3 | 10.81 | 5.46 |
Year 4 | 11.15 | 5.95 |
Year 5 | 11.51 | 6.48 |
Year 6 | 11.87 | 7.06 |
Based on the above values, CPY A will likely have a _______ P/E ratio than CPY B; and, CPY As EPS is growing at a rate of _______% per year, over the 5-year period from Year 1 to Year 6.
a.
lower; 3.16
b.
lower; 6.32
c.
lower; 9.48
d.
higher; 3.16
e.
higher; 6.32
f.
higher; 9.48
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