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The following information has been collected regarding Bee Company: ( 5 marks) Most recent earnings per share $1.65 Average P/E ratio of similar firms 20

The following information has been collected regarding Bee Company: ( 5 marks)

Most recent earnings per share

$1.65

Average P/E ratio of similar firms

20

Required rate of return on equity capital

15%

Estimate a price per share for Bee Company using the price earning multiple.

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