Question: I need help finding implied return, thanks. Sunset Corp. currently has an EPS of $2.48, and the benchmark PE for the company is 20. Earnings
I need help finding implied return, thanks.

Sunset Corp. currently has an EPS of $2.48, and the benchmark PE for the company is 20. Earnings are expected to grow at 5.5 percent per year. 10 1 a. What is your estimate of the current stock price? (Do not round intermediate points calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assuming the company pays no dividends, what is the implied return on the company's stock over the next year? (Do not round intermediate calculations and eBook enter your answer as a percent rounded to 1 decimal place, e.g., 32.2.) References a Stock price today $ 49.60 - Stock price in one year $ 52.00 :%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
