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  3. .- consider bultaco company and u.s. honda, inc.,

.- Consider Bultaco Company and U.S. Honda, Inc., both of which reported earnings of $1,000,000....

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Finance

.- Consider Bultaco Company and U.S. Honda, Inc., both of which reported earnings of $1,000,000. Without new projects, both firms will continue to generate earnings of $1,000,000 in perpetuity. Assume that all earnings are paid as dividends and that both firms require a return of 15 percent.

  1. What is the current PE ratio for each company?

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