You have found the following historical information for the Daniela Company over the past four years: Year 2 Year 3 Stock price EPS Year 1 $ $62.12 $71.34 $65.25 52.50 2.80 2.92 3.20 3.45 Year 4 Earnings are expected to grow at 21 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price
You have found the following historical information for the Daniela Company over the past four years: Year 2 Year 3 Stock price EPS Year 1 $ $62.12 $71.34 $65.25 52.50 2.80 2.92 3.20 3.45 Year 4 Earnings are expected to grow at 21 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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