Given the information below for Sugar Rush, compute the expected share price by the end of 2023 using price P/E. Assume that the historical arithmetic average growth rates will remain the same. For 2018, the EPS was $4.50. Hint: calculate the average EPS growth rate and the average P/E. Year Price EPS $96.50. $74.25. $98.00. $80.85. 2019 $65 $4.50 2020 $58 $4.00 2021 $76 $5.50 2022 $98 $6.00

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 22SP
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Given the information below for Sugar Rush, compute the expected share price by
the end of 2023 using price P/E. Assume that the historical arithmetic average
growth rates will remain the same. For 2018, the EPS was $4.50. Hint: calculate the
average EPS growth rate and the average P/E.
Year
Price
EPS
$96.50.
$74.25.
$98.00.
$80.85.
$100.00.
$106.70.
2019
$65
$4.50
2020
$58
$4.00
2021
$76
$5.50
2022
$98
$6.00
Transcribed Image Text:Given the information below for Sugar Rush, compute the expected share price by the end of 2023 using price P/E. Assume that the historical arithmetic average growth rates will remain the same. For 2018, the EPS was $4.50. Hint: calculate the average EPS growth rate and the average P/E. Year Price EPS $96.50. $74.25. $98.00. $80.85. $100.00. $106.70. 2019 $65 $4.50 2020 $58 $4.00 2021 $76 $5.50 2022 $98 $6.00
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