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Waverley stock will generate earnings of $5 per share this year. The discount rate for the stock is 15 percent and the present value of
Waverley stock will generate earnings of $5 per share this year. The discount rate for the stock is 15 percent and the present value of growth opportunities is $20 per share. What is the price- earnings ratio?
Multiple Choice
4.0
5.3
6.7
9.3
10.7
Could you please show me the steps on how to get the final answer? That is, using formulas without abbreviations.
Thank you!
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