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Suppose you are considering the purchase of shares issued by XYZ Corporation. The shares are currently trading at $10 per share. At that price, the

Suppose you are considering the purchase of shares issued by XYZ Corporation. The shares are currently trading at $10 per share. At that price, the valuation of XYZ is $500 million.

The annual revenue of XYZ is $1 billion, but it is losing money and has lost $200 million in its most recent accounting year.

Explain how you would make this decision in 250 words, including what additional information you would need to make the desicion.



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