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Cheese Sphere Inc. (CSI) earned $11.25 per share this year. Earnings are expected to grow 7% next year. CSI pays out 30% of earnings as

Cheese Sphere Inc. (CSI) earned $11.25 per share this year. Earnings are expected to grow 7% next year. CSI pays out 30% of earnings as dividends. If similar firms currently have P/E ratios of 14 based on forecast earnings, what market price will we observe for CSI? How do you get this answer?

Answer: 168.53

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