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1. ZZZ Inc is looking to you as their new analyst to come up with an estimate of their stock price. You know that

1. ZZZ Inc is looking to you as their new analyst to come up with an estimate of their stock price. You know that YYY Company is in the same exact industry, that their net income for the year was $2,000,000, they have 500,000 shares outstanding, and the current price of their stock is $28. Assuming that ZZZ Inc's earnings per share is $10.50, what would be an estimate of ZZZ Inc's stock price? HINT: What ratio uses this info?

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