Which company would you value higher and why

Reference no: EM13298118

Company A has expected earnings per share of $2 in its first year, $4 its second year, and then $10 per year for many more years. Company B has expected earnings of $10 a share for three years only. Which company would you value higher and why?

Reference no: EM13298118

Questions Cloud

What is the stock worth : Suppose jc penneys has a nonmaturing perpetual preferred stock outstanding that pays 1.56 quarterly dividend and has a required return of 12% APR - 3% quarterly. what is the stock worth?

Compute the after-tax rate of return using straight line : A $78,000 invtestment in machinery is proposed. It is anticipated that this investment will cause a reduction in net annual operating disbursements fo $16,300 a year for 12 years. The investement will be depreciated for income tax purposes

Discussions about sex-sexuality and relationships : Sometimes it can be difficult for adults to know when to raise issues, but the important thing is to maintain an open relationship with children which provides them with opportunities to ask questions when they have them.

How fast are the rockets moving with respect to the earth : Two rockets approach earth from opposite directions at equal speeds relative to the earth. How fast are the rockets moving with respect to the earth

Which company would you value higher and why : Company B has expected earnings of $10 a share for three years only. Which company would you value higher and why?

Explain a certain metal oxide has the formula mo : A certain metal oxide has the formula MO where M denotes the metal. A 36.46g sample of the compound is strongly heated in an atmosphere of hydrogen to remove oxygen as water molecules.

The early years of american zoetrope : The Early Years of American Zoetrope

Determine the amplitude of the motion of the block : A 0.25 kg block attached to a spring of spring constant 36.5 N/m is oscillating on a horizontal frictionless surface as shown. What is the amplitude of the motion of the block

Which of the following methods allows corps with the ability : The majority of public offerings of secruities must be registered with the SEC, a costly and time consuming process. which of the following methods allows corps with the ability to speed up the registration process?

User Account

All Pages