The Current Price of DEF Corporation Stock Is $26

question 8

Multiple Choice

The current price of DEF Corporation stock is $26.50 per share. Earnings next year should be $2 per share and it should pay a $1 dividend. The P/E multiple is 15 times on average. What price would you expect for DEF's stock in the future?

• A) $13.50
• B) $15.00
• C) $26.50
• D) $30.00

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