es If you look at stock prices over any year, you will find a high and...
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es If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio. we now have a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years. High price Low price EPS Year 1 $27.93 20.36 1.60 Year 2 $26.82 20.68 1.73 Year 3 $30.92 26.15 1.86 a. High target stock price b. Low target stock price Year 4 $37.51 26.91 2.20 Earnings are projected to grow at 9% over the next year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. What is your high target stock price over the next year? b. What is your low target stock price over the next year? es If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio. we now have a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years. High price Low price EPS Year 1 $27.93 20.36 1.60 Year 2 $26.82 20.68 1.73 Year 3 $30.92 26.15 1.86 a. High target stock price b. Low target stock price Year 4 $37.51 26.91 2.20 Earnings are projected to grow at 9% over the next year. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. What is your high target stock price over the next year? b. What is your low target stock price over the next year?
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Answer rating: 100% (QA)
STEP1 we need to find the EPS for year 5 EPS 5 EPS41 g 1280 1 005 1344 STEP 2 To t... View the full answer
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date:
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