PSG expects to have earnings per share of $5.25 in 2005 and $5.65 in 2006 The...
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PSG expects to have earnings per share of $5.25 in 2005 and $5.65 in 2006 The average price-earnings ratio for the storage industry is 10X (times). PSG has traditionally had a P/E ratio 12% higher than the industry and in 2005 it is expected to be 15% higher than the industry. Calculate the expected price of Pacific's stock price in 2005 and 2006 based on expectations of EPS and P/E ratios. PSG expects to have earnings per share of $5.25 in 2005 and $5.65 in 2006 The average price-earnings ratio for the storage industry is 10X (times). PSG has traditionally had a P/E ratio 12% higher than the industry and in 2005 it is expected to be 15% higher than the industry. Calculate the expected price of Pacific's stock price in 2005 and 2006 based on expectations of EPS and P/E ratios.
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1 Calculate the expected price of Pacifics stock in 2005 Given EPS in 2005 525 Average PE ratio for ... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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