Consider Pacific Energy Company and U. S. Bluechips, Inc., both of which reported earnings of $954,000. Without new projects, both firms will continue to generate earnings of $954,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 14 percent. a. What is the current PE ratio for each company
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Consider Pacific Energy Company and U. S. Bluechips, Inc., both of which reported earnings of $954,0...
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