Please choose one growth stock and one value stock you are familiar with from the stock...

 

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Please choose one growth stock and one value stock you are familiar with from the stock market. (1) Explain why you classify them as a growth stock or a value stock? 2) Use Exercise 5 as a reference, please value these two stocks by comparison method (P/E, P/B, P/S) and explain whether you will buy or sell these two stocks in the future. Exercise 5. (5 points). An analyst decides to value Firm A on the basis of multiples of two comparable firms, Firm B and Firm C. Firm B trades at 16 times trailing earnings and C trades at 12 time trailing earnings. Firm A's last reported EPS was $2.34. Please choose one growth stock and one value stock you are familiar with from the stock market. (1) Explain why you classify them as a growth stock or a value stock? 2) Use Exercise 5 as a reference, please value these two stocks by comparison method (P/E, P/B, P/S) and explain whether you will buy or sell these two stocks in the future. Exercise 5. (5 points). An analyst decides to value Firm A on the basis of multiples of two comparable firms, Firm B and Firm C. Firm B trades at 16 times trailing earnings and C trades at 12 time trailing earnings. Firm A's last reported EPS was $2.34.

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AnsuIER A growth lock is a shave in a business that is shown faster average earnings and has the pol... View the full answer