Question: Due to growing demand for computer software, the Perry Company has had a very successful year and expects its earnings per share to grow by

Due to growing demand for computer software, the Perry Company has had a very successful year and expects its earnings per share to grow by 25 percent to reach $7 for this year. Estimate the price of the company's common stock assuming price/earnings ratio of the two competitors of Perry is 15. Assume one is more similar to Perry than another and it bears 65% weight.

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