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The stock of Western Graphics Co. paid a dividend of $0.40 per share last year on earnings of $1.00 per share. The firm's earnings and

The stock of Western Graphics Co. paid a dividend of $0.40 per share last year on earnings of $1.00 per share. The firm's earnings and dividends are expected to grow at 5% per year forever. Shareholders require a return of 12% on their investment.

Question 1

The justified trailing multiples is:

Question 2

The justified leading P/E is:

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