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Currently, a firm has an EPS of $2.08 and a benchmark PE of 12.7. Earnings are expected to grow by 3.8 percent annually. What is the estimated current stock price

Respuesta :

Ritmeks

Answer:

26.42

Explanation:

A firm has an EPS of $2.08

The benchmark PE is 12.7

The growth rate is 3.8 percent

Therefore the estimated current stock price can be calculated as follows

= 2.08×12.7

= 26.42

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