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11. Foreign stock valuation 1. 2. 3. 4. STEP: 1 of 4 Suppose CleanAir Co., a European renewable energy startup, currently has earnings of 4

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11. Foreign stock valuation 1. 2. 3. 4. STEP: 1 of 4 Suppose CleanAir Co., a European renewable energy startup, currently has earnings of 4 per share and that Becky, a U.S. investor, anticipates the earnings per share to grow by 2 percent per year. Using a mean industry PE ratio of 13 and the expected annual growth rate on the firm's existing earnings, the estimated stock price in three years is: 46.90 per share 49.66 per share 55.18 per share 56.84 per share

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