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EXCEL PROBLEM: Suppose we are trying to value the company Inactivision, a video game developer that does not pay dividends. If the appropriate industry PE

EXCEL PROBLEM: Suppose we are trying to value the company Inactivision, a video game developer that does not pay dividends. If the appropriate industry PE for this type of company is

20

and you predict earnings to be $

2.50

per share for the coming year, what price do you forecast for this stock based on its predicted earnings?

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