You have found the following historical information for the Daniela Company over the past four years: Earnings
Question:
You have found the following historical information for the Daniela Company over the past four years:
Earnings are expected to grow at 11 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price one year from today?
Transcribed Image Text:
Year 3 Year 1 Year 2 Year 4 $56.32 3.04 Stock price EPS $58.14 $49.18 2.35 $53.18 2.47 2.78
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We need to find the PE ratio each year which is PE 1 4918235 2093 PE 2 5318247 2153 PE 3 5...View the full answer
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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
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