You have found the following historical information for DEF Company: Year 2 Year 3 Year 4 Year1 Stock Price $45.38 $54.31 $59.3 $50.08 EPS $2.37 $2.4 $3 $3.48 Earnings are expected to grow at 8 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
You have found the following historical information for DEF Company: Year 2 Year 3 Year 4 Year1 Stock Price $45.38 $54.31 $59.3 $50.08 EPS $2.37 $2.4 $3 $3.48 Earnings are expected to grow at 8 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year? Answer to two decimals.
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
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