Respond to the following paragraph : The features that drive the valuations that differ in Vegas Chips are:...

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Finance

Respond to the following paragraph:
The features that drive the valuations that differ in VegasChips are: The forecasted rate of growth of earnings per year, theway the ratios change over the years and the dividend pay ratio ofearnings.
The additional information that would be required by theinvestors to gain confidence in the projections would be to look atthe reports done by the analysts and see the connection in theinvesting pattern. With that information they should plan whetherto invest in the project or not. They should see what factors areaffecting the companies growth, the competition in the industry,the probability of multiple projections, earning and dividendpayouts.

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As a rationale investor a person should look for the mentioned factors ie growth rate of earnings per year change in ratios and dividend payout These factors give the following insights Growth rate of Earnings per year This means that how much the company is earning from the funds invested by the investors This shows return on investments If the company is earning better than the rate offered in open market on same risky investment then the investor should keep hisher money invested in the company See Answer

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