Question: In your responses, please type (A) and (B) to differentiate the parts of your answers. (A) General Electric currently has a stock beta of about
In your responses, please type (A) and (B) to differentiate the parts of your answers. (A) General Electric currently has a stock beta of about 1.15 and an annual growth rate of earnings per share of 10%. If the current stock price is $15 what is your best guess about the price in two years? (4 pts) (B) "Growth stocks generally sell at high multiples. They are a better buy because expected growth rates of earnings are higher." Discuss (2 pts)
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