Pepper Inc. is expected to have before-tax earnings of $2.5 million next year. The tax rate is

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Pepper Inc. is expected to have before-tax earnings of $2.5 million next year. The tax rate is 35 percent. There are 2 million common shares outstanding. Comparable firms in the same industry are estimated to have price-earnings multiples of 10 to 16. Estimate the intrinsic value of Pepper's share price based on the price-earnings method.

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