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The Venetian Corporation recently reported net income of $3,000,000. It has 1,500,000 shares of common stock, which currently trades at $60 a share. Venetian continues
The Venetian Corporation recently reported net income of $3,000,000. It has 1,500,000 shares of common stock, which currently trades at $60 a share. Venetian continues to expand and expects that 1 year from now its net income will be $5,250,000. Over the next year it also anticipates issuing an additional 450,000 shares of stock, so that 1 year from now it will have 1,950,000 shares of common stock. Assuming its price/earnings ratio remains at its current level, what will be its stock price 1 year from now? a. $44.57 b. $105.00 c. $60.00 d. $80.77 e. $46.15
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