1. Jade company has earnings of $1.20. The benchmark PE for the company is 16. What stock price would you consider appropriate? What if it was 21?

2. Stock Valuation and PE:You have found the following historical information on Jade Company for the past 3 years. Earnings are expected to grow at 9% for the next year. Using the company's historical aver PE as a benchmark, what is the target stock price one year from today? Would you buy, sale or hold stock with this company?

	Year 1 (2014)	Year 2 (2015)	Year 3 (2016)
Stock price	$19.61	$17.56	$15.85
Earnings Per Share	1.00	0.78	0.65

3. Suppose we have the following information on a particular company over the past 3 years. Earning are projected to grow at 8% over the next year. What are your high and low target stock prices over the next year?

	Year 1 (2014)	Year 2 (2015)	Year 3 (2016)
High price	$19.61	$17.56	$15.85
Low Price	$19.02	$17.20	$15.27
Earnings Per Share	1.00	0.78	0.65

Please calculate using a Financial Calculator. Explain each step. Do not use an excel spreadsheet