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You have run a regression of value/sales ratios against operating margins for cosmetics firms: EV/Sales = 0.45 + 8.5 (After-tax operating margin) Este Lauder earned

You have run a regression of value/sales ratios against operating margins for cosmetics firms:

EV/Sales = 0.45 + 8.5 (After-tax operating margin)

Este Lauder earned $80M after taxes on revenues of $500M. In contrast, GenCosmetics, a manufacturer of generic cosmetics, had an after-tax operating margin of 5%. Estimate the brand name value of Este Lauder

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