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Other than dividend growth model, we can employ Market Multiple Analysis method for stock valuation. We suppose a firm's estimated earnings per share is $1.5.

Other than dividend growth model, we can employ Market Multiple Analysis method for stock valuation. We suppose a firm's estimated earnings per share is $1.5. The average price to earnings (P/E) ratio for similarly publicly traded firms is 15. What's the firm's expected stock price?

$10

$15

$22.5

$30

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