Suppose that a firmrsquos recent earnings per share and, Financial Management

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Suppose that a firmrsquos recent earnings per share and

Suppose that a firm’s recent earnings per share and dividend per share are $2.70 and $1.70, respectively. Both are expected to grow at 7 percent. However, the firm’s current P/E ratio of 26 seems high for this growth rate. The P/E ratio is expected to fall to 22 within five years.

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Financial Management: Suppose that a firmrsquos recent earnings per share and

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Financial Management: Suppose that a firmrsquos recent earnings per share and

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