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Company's EPS last year=$2.13. Those earnings will grow 6.5% per year. The P/E is expected to be 19. Required: What is the expected stock price
Company's EPS last year=$2.13. Those earnings will grow 6.5% per year. The P/E is expected to be 19. Required: What is the expected stock price in 6 years? Hint: grow the EPS for 6 years to the future amount (use FV), then apply the Price/Earnings ratio to that EPS to get the expected stock price. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
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