28 Stock Valuation and PE LO2) In the previous problem, we assumed that the stock had a single stock price for the year. However, 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 over the past four years: Year 4 High price Low price EPS Year 1 $27.43 19.86 1.35 Year 2 $26 32 20.18 1.58 Year 3 $30.42 25.65 1.51 $37.01 26.41 1.85 Earnings are projected to grow at 9 percent over the next year. What are your high and low target stock prices over the next year