Legacy Industries Inc. has a historic P/E multiple of 15, a current EPS of $2.50 projected to grow by 4% in the coming year, and a forward looking P/E multiple of 18. With this information please estimate the current price of the firm's stock
A) $37.50
B) $46.80
C) $39.00
D) $48.20
B
Explanation: B) P = D1 * multiple = $2.50 * (1.04 ) * 18 = $46.80.
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