Alpha Corps earnings and dividends are growing at 15 percent per year. Beta Corps earnings and dividends
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Alpha Corp’s earnings and dividends are growing at 15 percent per year. Beta Corp’s earnings and dividends are growing at 8 percent per year. The companies’ assets, earnings, and dividends per share are now (at date 0) exactly the same. Yet PVGO accounts for a greater fraction of Beta Corp’s stock price. How is this possible?
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
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