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Question
The current price of Fukushima Power Co. stock is $32.50 per share. Earnings next year should be $2.5 per share and it should pay a $ 1 dividend. The P/E multiple is 15 times on average in this industry. What price would you expect for the firm's stock in the future if you believe the P/E multiple approach is correct?a. $13.5
b. $22.50
c. $26.50
d. $37.50
Answer
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Related questions
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