P/E ratios reported in The Wall Street Journal use the latest closing prices and the last 12
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P/E ratios reported in The Wall Street Journal use the latest closing prices and the last 12 months’ reported earnings per share. Explain why the corresponding earnings–price ratios (the reciprocals of reported P/Es) are not accurate measures of the expected rates of return demanded by investors.
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There are two reasons why the corresponding earningsprice ratios are not accurate measures ...View the full answer
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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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