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1). Sully Corp. currently has an EPS of $2.40, and the benchmark PE for the company is 23. Earnings are expected to grow at 5
1). Sully Corp. currently has an EPS of $2.40, and the benchmark PE for the company is 23. Earnings are expected to grow at 5 percent per year. a. What is your estimate of the current stock price? (Round your answer to 2 decimal places. (e.g., 32.16)) Current stock price $ b. What is the target stock price in one year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Target stock price $ c. Assuming the company pays no dividends, what is the implied return on the companys stock over the next year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Implied return of stock % 2. value: 2.00 points 2). Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.70 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each companys stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company? (Round your answers to 2 decimal places. (e.g., 32.16)) Stock price Red, Inc. $ Yellow Corp. $ Blue Company $
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