How would an increase in the perceived riskiness of a common stock's future cash flows affect its

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How would an increase in the perceived riskiness of a common stock's future cash flows affect its price-earnings ratio? Explain intuitively and mathematically.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:55 AM

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How would an increase in the perceived riskiness of a common stock's future cash flows affect its

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Fundamentals of Investments

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