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1. Company A's EPS is $1.50. Its closest competitor, Company B, is trading at a P/E of 22 Assume the companies have a similar operating

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1. Company A's EPS is $1.50. Its closest competitor, Company B, is trading at a P/E of 22 Assume the companies have a similar operating and financial profile. a. If Company A's stock were trading at $37.50, what would that indicate about its value relativie to Company B? b. If we assume that Company A's stock should trade at about the same P/E as Company B's stock, what will we estimate as an appropriate price for Company A's stock? 1. Company A's EPS is $1.50. Its closest competitor, Company B, is trading at a P/E of 22 Assume the companies have a similar operating and financial profile. a. If Company A's stock were trading at $37.50, what would that indicate about its value relativie to Company B? b. If we assume that Company A's stock should trade at about the same P/E as Company B's stock, what will we estimate as an appropriate price for Company A's stock

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