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Pinnacle Financial Management Projects That Earnings Per Share for Valley

Question 18

Multiple Choice

Pinnacle Financial Management projects that earnings per share for Valley Imports Inc.will increase from the current $1.75 per share to $2.00 next year.If Pinnacle recommends a P/E ratio of 12.5 for Valley Imports,what is the recommended forward looking price for the firm?


A) $21.88 per share
B) $25.00 per share
C) $23.44 per share
D) $6.25 per share

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