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:

Stock price EPS Year 1 $53.13 2.35 Year 2 $58.45 2.47 Year 3 $70.31 2.78 Year 4 $61.12 3.04

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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Fundamentals of Corporate Finance

ISBN: 978-0077861704

11th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jan 04, 2024 08:10 AM

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

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To find the target stock price one year from today using the historical average PE PriceEarnings rat...View the full answer

Fundamentals of Corporate Finance

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