The shareholders of an older established company expect a 10% return, while the company itself reports that
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The shareholders of an older established company expect a 10% return, while the company itself reports that it expects to be able to invest in projects with a 12% return in the future.The board of the company is considering retaining more earnings going forward.Will this increase, decrease, or have no effect on the company's P/E ratio?
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
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