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You estimate that next years earnings for Corn Candy, Inc. will be $3.50. Their current dividend payout ratio is 70% and they recently paid a
You estimate that next years earnings for Corn Candy, Inc. will be $3.50. Their current dividend payout ratio is 70% and they recently paid a $2.19 dividend. If other stocks in the sector typically trade at a P/E of 20x, what price should you value Corn Candy, Inc. using the P/E approach to find the value of the stock.
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