Question: Herbert, Inc. expects to generate earnings over the next five years of P50,000; P60,000; P65,000; P70,000 and P75,000. Using the Capitalization of Earnings Method, what

Herbert, Inc. expects to generate earnings over the next five years of P50,000; P60,000; P65,000; P70,000 and P75,000. Using the Capitalization of Earnings Method, what is the estimated value of the firm using 8.00% required rate of return?

 

a. 800T

b. 700T

c. 600T

d. 500T

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