Consider the valuation of the two companies if we assume that Company A's earnings of $200,000 will
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Consider the valuation of the two companies if we assume that Company A's earnings of $200,000 will continue to grow at a 15% rate for the next five years and then level off and that Company B's earnings will be $148,000, but will grow at a 33% rate for the next five years before leveling off. Assume a discount rate of 20% -- to reflect the riskiness of both companies
Related Book For
Financial Reporting Financial Statement Analysis and Valuation
ISBN: 978-0324302950
6th edition
Authors: Clyde P. Stickney
Posted Date: