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You are considering purchasing stock in a fast-growing company. In the recent financial statement, the firm reported that EPS is $2.16. You feel that earnings

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You are considering purchasing stock in a fast-growing company. In the recent financial statement, the firm reported that EPS is $2.16. You feel that earnings will grow at 40% for the next two years. Then, it seems reasonable to assume that they will grow at 5% from then on. you require a return of 20%, based on these assumptions, how much would you pay for a share today? $2261 O $35.10 O $15.12 $26.04 O $36.89 7 pts Question 19 You have been assigned to value the stock of XYZ. a small illiquid company. Their recent income statement shows that earnings were $30,589.307 and they have 9,719.532 shares outstanding. You have found a very similar form with publicly traded stock, ABC, which recently reported EPS of $2.358 and its stock is currently selling for $37.59. Use the P/E ratio of ABC to establish a reasonable price for the target firm XYZ

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