If you look at stock prices over any year, you will find a high and low...
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If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: Year 1 High price $ 99.40 Low price 74.23 EPS 8.68 Year 2 a. High target stock price b. Low target stock price $ 123.00 90.34 10.43 Year 3 $ 132.40 71.02 11.51 Year 4 $ 149.03 117.55 12.90 Earnings are projected to grow at 6 percent over the next year. a. What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is your low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: Year 1 High price $ 99.40 Low price 74.23 EPS 8.68 Year 2 a. High target stock price b. Low target stock price $ 123.00 90.34 10.43 Year 3 $ 132.40 71.02 11.51 Year 4 $ 149.03 117.55 12.90 Earnings are projected to grow at 6 percent over the next year. a. What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is your low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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Answer rating: 100% (QA)
Finding High and Low Target Stock Prices a High Target Stock Price Project Next Years Earnings EPS Y... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
Posted Date:
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