Answer :
Answer:
Assuming that the growth rate of Company A' stock is larger than the discount rate this means that the stock price will be a negative value.
The implication is that the stock price is higher in comparison to the earnings. Perhaps, the entity is a newly launched organization that has not accumulated enough in earnings.
Explanation:
A stock that has a negative price should be investigated as the company may have liabilities that are in excess of the assets.