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The ABC Company has net income of $38,000 for the year with 10,000 shares of stock outstanding. The XYZ Company is a similar firm

The ABC Company has net income of $38,000 for the year with 10,000 shares of stock outstanding. The XYZ

The ABC Company has net income of $38,000 for the year with 10,000 shares of stock outstanding. The XYZ Company is a similar firm with similar growth opportunities and it has 8,000 shares of stock outstanding with a market price of $18 a share and earnings per share of $1.20. What is the estimated stock price of the ABC Company? (Hint: use the P/E multiple method to estimate the stock price)

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