Connect Only Problem $8-12$ P$/$E Ratio Model and Future Price $($LG$8-7)$

New York Times Company $($NYT$)$ recently earned a profit of $$3\mathrm{.}21$ per share and has a P$/$E ratio of $19\mathrm{.}45.$ The dividend has been growing at a $6\mathrm{.}50$ percent rate over the past six years.

If this growth rate continues, what would be the stock price in five years if the P$/$E ratio remained unchanged? What would the price be if the P$/$E ratio increased to $22$ in five years?

Note: Round your answers to $2$ decimal places.

Stock price

Stock price with new P$/$E