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Question
Big Joe's Burgers has a P/E ratio of 12 and a beta equal to 3. The risk-free rate is 8 percent and the return to the market has been 14 percent. The firm has an EPS of $5.00. What should be the current market price of Big Joe's stock?
a. $120.00
b. $96.00
c. $44.40
d. $60.00
e. $55.20
Answer
This answer is hidden. It contains 28 characters.
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