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Valuation with price/earnings multiples For the firm shown in the following table, use the data given to estimate its common stock value employing price/earnings (P/E)

Valuation with price/earnings multiples

For the firm shown in the following table, use the data given to estimate its common stock value employing price/earnings (P/E) multiples.

Expected EPS Price/earnings multiple
$2.18 6.2

What is the value of the firm's common stock?

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