Capitalized value of the earnings per share


Question: Presume the per share PVGO of a firm's common stock is computed as $44, and the firm's current market price is $56. This implies that the capitalized value of the earnings per share the firm is expected to generate under a no-growth policy is:

a) $12

b) $44

c) $50

d) $56

e) $100

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Accounting Basics: Capitalized value of the earnings per share
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