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You want to use the P / E approach to evaluate the stock price of CBA Inc. The industry average P / E ratio is

You want to use the P

/

E approach to evaluate the stock price of CBA Inc. The industry average P

/

E ratio is

15 .

The firm's expected earnings for next year are $

2

million, with

1

million shares outstanding. What should be the intrinsic value of the stock per share based on this approach?

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