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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

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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