I used the same dividend rate for Company B, and the lower purchase price (at least at 10 times earnings) does in fact tip the scale in
favor of Company B (15 % CAGR vs 13 % CAGR roughly).
Not exact matches
Dual shares, often known as Class A and Class
B stock, until recently were out
of favor, but they are making a spectacular comeback, especially among technology
companies.
The first is that because it relies on
B / P, its low projected alpha may be associated with low profitability
of the
companies the strategy
favors.
Investors, for behavioral or institutional reasons, commit systematic errors when they value securities that induce them to pay too much for winners (low E / P or
B / P stocks) and too little for losers (boring, poorly performing, unknown and out -
of -
favor (high E / P or
B / P)
companies).
This time, the
company will be getting rid
of its many data plans in
favor of what it's billing as a no -
BS unlimited plan for everyone.