Question: How do I solve this? Need to show work. Question: A stock analyst is trying to calculate a fair value of XYZ companys common stock

How do I solve this? Need to show work.

Question: A stock analyst is trying to calculate a fair value of XYZ companys common stock by using the following information. What would be the fair value of this companys common stock? Industry average P/E ratio = 3.45 times and Earnings per share of XYZ company is $5.0.

Answer: $17.25 per share

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