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$16.$ Problem $4\mathrm{.}21($P$-$E and Stock Price$)$

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Problem Walk$-$Through

Ferrell Inc. recently reported net income of $$8$ million. It has $350,000$ shares of common stock, which currently trades at $$55$ a share. Ferrell continues to expand and anticipates that $1$ year from now, its net income will be $$13\mathrm{.}6$ million. Over the next year, it also anticipates issuing an additional $105,000$ shares of stock so that $1$ year from now it will have $455,000$ shares of common stock. Assuming Ferrell's price$/$earnings ratio remains at its current level, what will be its stock price $1$ year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

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