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The current price of DEF Corporation stock is $26.50 per share. Earnings next year should be $2.65 per share and it should pay a $1

The current price of DEF Corporation stock is $26.50 per share. Earnings next year should be $2.65 per share and it should pay a $1 dividend. The P/E multiple is 15 times on average. What price would you expect for DEF's stock in the future?

a. $33.75

b. $39.75

c. $38.57

d. $36.21

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