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You are trying to value the stock of B&E Corp. B&E is a privately held company...

You are trying to value the stock of B&E Corp. B&E is a privately held company so its shares are not publicly traded. You know, however, that the company will have earning per share of $2.00 at the end of the year. In addition, you know that B&E is similar to several publicly traded firms and you have compiled information on these firms in the table below. Using the average price to earnings ratio (P/E ratio) of these comparable firms, what is the best estimate of B&E's share price? Select one.

Firm Share Price EPS1
I $    33.55 $       2.30
II $    14.01 $       1.10
III $    15.77 $       1.20
IV $    11.98 $       0.75
V $    11.12 $       0.80
I.

$7.03
II.

$28.14
III.

$32.64
IV.

$17.29
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