Question: 1) Two companies (A and B) have the same long-term prospects concerning growth and ROIC. Company A temporarily stumbles during a new product launch and

1) Two companies (A and B) have the same long-term prospects concerning growth and ROIC. Company A temporarily stumbles during a new product launch and profits drop considerably as the company scrambles to fix the error. Will Company A trade at a higher or lower enterprise value multiple than its stable peer, Company B? Why?

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