A firm has earnings of $230 this year, grows by about 6% each year, and has a

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A firm has earnings of $230 this year, grows by about 6% each year, and has a price/earnings ratio of 40. What would its price/earnings ratio be if it could grow by 7% each year instead? How much would its value increase?

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 26, 2024 04:02 AM

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A firm has earnings of $230 this year, grows by about 6% each year, and has a price/earnings ratio of 40. What would its price/earnings ratio be if it could grow by 7% each year instead? How much...
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A firm has earnings of $230 this year, grows by about 6% each year, and has a

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Corporate Finance An Introduction

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