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Corporation's EPS last year is $2.38, and its P/E is expected to stay at 17 . Annual earnings growth is expected to be7.5%. Requirement 1:
Corporation's EPS last year is $2.38, and its P/E is expected to stay at 17 . Annual earnings growth is expected to be7.5\%. Requirement 1: What is your estimate of the current stock price? Hint: just last year's EPS times P/E. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Requirement 2: What is the target stock price in one year? Hint: grow EPS for one period and multiply by P/E. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Requirement 3: Assuming that the company pays no dividends, what is the implied return on the company's stock over the next year? Hint: with no dividends, this is just the growth rate in the stock price from the current price to next year's price. (Do not round intermediate calculations. Round your answer to 1 decimal place (e.g., 32.2).)
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