Question
A company has a current earnings per share (EPS) of $5 and a price-to-earnings (P/E) ratio of 10. Calculate the following: Current stock price of
A company has a current earnings per share (EPS) of $5 and a price-to-earnings (P/E) ratio of 10. Calculate the following:
- Current stock price of the company
- Future stock price of the company if the company's earnings grow at a rate of 10% annually for the next five years
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
978-0132479547
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