In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (GDP) growth rate of 4-5% per year, what should investors have reasonably expected in terms of a likely future rate of return implied by the stock markets level? show your work
In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (GDP) growth rate of 4-5% per year, what should investors have reasonably expected in terms of a likely future rate of return implied by the stock markets level? show your work
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 1P: Ogier Incorporated currently has $800 million in sales, which are projected to grow by 10% in Year 1...
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In 2000 the P/e ratio of the stock market reached about 45. If you assume that these corporations will grow roughly at the overall economys (
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