Examlex
Zorba's is a small chain of of restaurants whose stock is not publicly traded.The average P/E ratio for similar restaurant chains is 16.5;the P/E ratio for the S&P 500 Index is 15.2.This year's earnings were $1.10 per share;next's earnings are expected to be $1.21 per share.A reasonable price for a share of Zorba's stock is:
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