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A stock is currently trading for $ 1 5 . The company has a price earnings multiple of 1 0 . There are 1 0

A stock is currently trading for $15. The company has a priceearnings multiple of 10. There are 100 million shares outstanding. Your model indicates that the stock is actually worth $18. The company announces that it will use $400 million to repurchase shares. After the repurchase, what is the actual price-earnings ultiple of the stock?
7.33
8.44
10
9.27

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