A market price for the common stock of IBM (NYSE: IBM) in early-September 2013 was \($184.15\). IBM’s fiscal year coincides with the calendar year. According to data from Thomson First Call, the consensus EPS forecast for 2013 (FY1) as of September 2013 was \($16.19\). The consensus EPS forecast for 2014 (FY2) as of September 2013 was

\($18.35\).

i. Calculate IBM’s forward P/E based on a fiscal-year definition per Thomson First Call and FY1 consensus forecasted EPS.

ii. Calculate IBM’s forward P/E based on a fiscal-year definition and FY2 consensus forecasted EPS.