Problem $8-31$ Stock Valuation and PE $[$LO$2]$

Penguin, Incorporated, has balance sheet equity of $$6\mathrm{.}1$ million. At the same time, the

income statement shows net income of $$927,200.$ The company paid dividends of

$$486,780$ and has $200,000$ shares of stock outstanding. If the benchmark PE ratio is $25,$

what is the target stock price in one year? Assume the firm will grow at the sustainable

growth rate. $($Do not round intermediate calculations and round your answer to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

Target stock price