Question: Using the information below, compute the expected share price at the end of year 2014. *use arithmetic average to find averages year 2008 2009 2010

Using the information below, compute the expected share price at the end of year 2014.

*use arithmetic average to find averages

year

2008

2009

2010

2011

2012

2013

price

44.5

50.4

59.1

58.8

61.5

66.8

eps

4.5

5

5.22

5.55

6.56

7.5

Question #1) What is the EPS growth rate?

Question #2) What is the expected stock price using the P/E ratio analysis?

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