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Re: aroy post# 26276

Tuesday, 04/04/2006 12:47:11 AM

Tuesday, April 04, 2006 12:47:11 AM

Post# of 92056
Sure...

Ummmm....PE0 * E0 = MC = Vp = Hisc .035, followed by .05 * $495,000 2005 with 5,000,000 = x + B - D; HISC + Merger agreement D = DE * Sprint...

Ummmm
thus PE0 = / E0 + Nextel(B-B*DE) / E0 = + Bs(1-DE) / Es0

Since P = PE * Es, the rational stock price can determined by the following equation. Cybertracker...

Pr = PEr0 Es0 = PES * Es0 + Bs(1-DE) where PES = Port

If stocks were rationally priced (PEm=PEr) then their PEA value should be equal to PES as shown below.

PEA0 = PE0 - (Bs0 / Es0 ) ( 1 - DE ) = PES

The plot in Figure 1 shows what the PE ratio for a stock should be if it were rationally priced. These PE ratio curves produced by the formula above depend upon the number of years considered (N), the Re and Rf values and the assumption that Ei = (1+Re) Ei-1 and B-D=0.


OK...

10 Bucks! LOL!