Kevin Cousins is considering acquiring Majic Technolgies and wants to use the publicly traded comparable company analysis
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Question:
Kevin Cousins is considering acquiring Majic Technolgies and wants to use the publicly traded comparable company analysis approach to value the stock. He has determined that three companies - A, B, andC - are comparable to Majic Technolgies. Relevant data for the three comparable companies and forMajic Technolgiesfollows:
| Valuation Variables | A | B | C | Majic Technolgies |
| Current stock price ($) | 44.00 | 23.00 | 51.00 | 31.00 |
| Earnings per share ($) | 3.01 | 1.68 | 2.52 | 1.98 |
| Book value per share ($) | 15.16 | 7.18 | 11.15 | 10.02 |
What price shouldKevin offer for Majic Technolgies, given this info?
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