Question: Problem 11-15 - PE Model Suppose that a security earned $4.53 per share for the year and has a price of $85 per share. Earnings

Problem 11-15 - PE Model

Suppose that a security earned $4.53 per share for the year and has a price of $85 per share. Earnings are expected to grow at 0.12 % annually for the next five years. Also suppose the PE multiple is expected to increase 10% between now and five years.

EPS	$4.53
Price	$85
Growth Rate	12%
PE Change	10%
Years	5

What is the expected price in five years?

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