Question: I am not sure where, to begin with, this problem... You have found the following historical information for DEF Company: Year1 Year 2 Year 3

I am not sure where, to begin with, this problem...

"You have found the following historical information for DEF Company:

Year1 Year 2 Year 3 Year 4

Stock Price $46.29 $49.74 $54.55 $57.07

EPS $2.04 $2.9 $2.81 $3.78

Earnings are expected to grow at 8 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year?"

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