ABC inc. had earnings last year of

$1.28 in Q1

$1.33 in Q2

$1.40 in Q3

$1.48 in Q4

The industry average P/E is 12. ABCs P/E is 40% better than the industry average.

Refer back to Problem #1. The industry P/E drops from 12 to 10. ABC still enjoys a P/E premium of 1.25x over the industry. However, earnings for the year were:

$1.28 in Q1 $1.25 in Q2 $1.35 in Q3 $1.42 in Q4

a. What is ABCs new P/E?

b. What is ABCs stock price based on its P/E?

c. If an investor invested one year ago at the price determined in part 1 and sold at the price determined in part 5b, what is the investors HPR in $ and % if no dividends were paid by ABC?

Please show how you got the answer!! Thank you in advance !!