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Homefront is expected to generate sales of $5.8 per share next year. However, due to extensive investments it is expected to have net earnings of
Homefront is expected to generate sales of $5.8 per share next year. However, due to extensive investments it is expected to have net earnings of $-0.19. The average price-to-sales ratio for Homefront's industry is 8.6, and the average P/E ratio is 21. Based on this information what should be the price of Homefront's stock?
a. $56.24
b. $53.29
c. $49.88
d. $60.9
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