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Business, 27.07.2021 21:20 bandzswagg123

Suppose that a firm's recent earnings per share and dividend per share are $2.50 and $1.00, respectively. Both are expected to grow at 5 percent. However, the firm's current P/E ratio of 23 seems high for this growth rate. The P/E ratio is expected to fall to 19 within five years. Compute a value for this stock. Assume a 10 percent required rate

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Suppose that a firm's recent earnings per share and dividend per share are $2.50 and $1.00, respecti...
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