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Value of Stock

The current price of stock corp stock is $26.50 per share. Earnings next year should be $2 per share and it should pay a $1 dividend. The P/E multiple is 15 times an average. What price would you expect for future stock _______

$13.50, $15.00, $26.50, or $30.00

please advise answer & show why - thanks much!

Solution Summary

Value of Stock is assessed.

$2.19