You have found the following historical information for the Daniela Company over the past four years: Earnings

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You have found the following historical information for the Daniela Company over the past four years:

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


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?

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Related Book For  answer-question

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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