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Class #4 “Using Accounting Earnings For Valuation”0 = BV 0 + ¦ [AE T /(1+r)t] T=1 Where: BV T = Book Value Of Equity At Beginning Of Year T R = Cost Of Equity Capital AE T ... – Practical Approach #1: Consider P/E Ratio Or M/B Ratio For Valuation. If Firm Is Earning Losses Then Which Should You Use? – Berger, Ofek And Swary (JFE 1995) Mar 1th, 2024


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