23. Award: 10.00 points If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: High price Low price EPS Year 1 $ 89.67 Year 2 $ 104.37 70.99 6.60 85.77 9.02 Year 3 $126.27 76.81 Year 4 $ 137.74 8.68 113.42 10.27 Earnings are expected to grow at 9 percent over the next year. a. What is the high target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. a. High target price b. Low target price References Worksheet Learning Objective: 07-01 Assess how Difficulty: 2 Intermediate stock prices depend on future dividends and dividend growth. Section: 7.1 Common Stock Valuation