Value of share is equal to present value of future earnings

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Which of the following statements is FALSE?

The value of a share is equal to the present value of all future earnings (EPS).

All else equal, if stock A's dividends grow at a higher rate than stock B's dividends, A is valued higher than B.

P/E ratio is also called earnings multiple because P = appropriate P/E * EPS.

If the current market share price is higher than its intrinsic value, it is over-valued.

Reference no: EM13848968

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