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Giant Corp. has book value of equity of $3 million, earnings of $500,000 and 1 million shares outstanding You have the following data on comparable
Giant Corp. has book value of equity of $3 million, earnings of $500,000 and 1 million shares outstanding You have the following data on comparable companies: Comparable EPS BV equity Stock price (per share) $25 $10 $20 Firm A Firm B $1.25 $2.50 $35 Estimate Giant's fair stock value by using a warranted P/E multiple. $8.50 $17.00 $4.25 $10.50
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