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A firm has recently reported earnings per share of $ 1 4 . 0 0 and paid dividends per share of $ 2 . 3

A firm has recently reported earnings per share of $14.00 and paid dividends per share of $2.35. The earnings have grown 5% a year. The shares have a beta of 1.20. The Treasury bond rate is 2% and the return on the market is 9.5%. Estimate the P/E ratio of the firm.

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