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Show work You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock.
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You are a value investor and are interested in applying the historical average graham number to calculate the intrinsic value of a stock. This company has earnings per share (EPS) of $4.28 and book value per share (BVPS) of $22.96. You have observed that the current P/E ratio of the company is 19.4, but its 5-year historical average is 18.1. You have observed that the current P/B ratio of the company is 3.08, but its 5-year historical average is 3.14 What is the estimated intrinsic value for this stock? State your answer as a dollar amount with two decimal places Step by Step Solution
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