Stores with higher square footage growth

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The author of the Banc of America Merrill Lynch report says that stores with higher square footage growth and better same store sales growth have higher P/E’s. In the context of the above DDM and its link to P/E, why do you think that’s the case? You should answer how P/E’s and the DDM are linked and apply that knowledge to the comment from the report.

Reference no: EM131896803

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