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1- Assume the appropriate P/E of ABC stock is 15 times, and the EPS is $2.80 a) What is the value of the stock? b)

1- Assume the appropriate P/E of ABC stock is 15 times, and the EPS is $2.80

a) What is the value of the stock?

b) If the current market price was $35, would you buy the stock?

c) Calculate the PEG ration assuming the growth rate of earnings was 17. Would you buy the stock?

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