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RAH Inc Is Not Publicly Traded, but the P/E Ratios of of It's

Question 62

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RAH Inc. is not publicly traded, but the P/E ratios of it's 4 closest competitors are 15, 15.3, 15.7, and 16.5. RAH's current earnings per share are $1.50. They are expected to grow at 6% for the next few years. What is a reasonable price for a share of RAH stock?

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An appropriate P/E ratio would...

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