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STU Corporation has $ 3 million in earnings on $ 2 0 million in sales and has 1 million shares outstanding. Earnings per share of
STU Corporation has $ million in earnings on $ million in sales and has million shares outstanding. Earnings per share of comparable firm is $ and earnings per share of comparable firm is $ Comparable firm s stock is trading for $ and comparable firm s stock is trading for $ What is the estimated stock price of STU using the method of comparables? Use average multiples of the comparable firms when doing the calculations.
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