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What is your best guess about the price in two years

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Reference no: EM132861815

Question -

a) Abba 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?

b) "Growth stocks generally sell at high multiples. They are a better buy because expected growth rates of earnings are higher." Explain.

Reference no: EM132861815

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