Consider pacific energy company and us blue chips inc both, Ask an Expert

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Consider Pacific Energy Company and U.S. Blue chips, Inc., both of which reported earnings of $750,000. Without new projects, both firms will continue to generate earnings of $750,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a 14 percent rate of return.

What is the current PE ratio for each company?

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Category:- Basic Finance
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