Extremely high pe multiples were observed in the market, Ask an Expert

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Extremely high P/E multiples were observed in the market several years ago, especially for technology firms.

a) How can you explain the fact that firms with very low earnings or no earnings are valued in the market as a being with billions of dollars?

b) How do these firms' values fit the dividend discount model?

c) What factors would be likely to influence the market's evaluation of these firms?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91374444

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