Question
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
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 | 12.25 | 3.5 |
Year 2 | 13.11 | 3.62 |
Year 3 | 14.03 | 3.75 |
Year 4 | 15.02 | 3.88 |
Year 5 | 16.07 | 4.01 |
Year 6 | 17.2 | 4.15 |
Based on the above values, CPY A will likely have a _______ P/E ratio than CPY B; and, CPY A's EPS is growing at a rate of _______% per year, over the 5-year period from Year 1 to Year 6.
a. lower; 7.02
b. lower; 14.05
c. lower; 21.07
d. higher; 7.02
e. higher; 14.05
f. higher; 21.07
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Calculus Early Transcendentals
Authors: William L. Briggs, Lyle Cochran, Bernard Gillett
2nd edition
321954428, 321954424, 978-0321947345
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