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To: Bosco who wrote (5216)4/14/1998 5:03:00 AM
From: Moominoid  Read Replies (1) | Respond to of 6980
 
Dear David - just curious, how do you derive the #s? Thanks

My numbers are from the Capital Asset Pricing Model assuming that investors are paying for earnings rather than dividends. Though assuming valuation is based on earnings means that investors are inconsistent assuming that it's based on dividends means the whole stock-market is up to 200% overvalued.

David