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Cracker Barrel, which operates restaurants and gift shops, reported dramatic growth in earnings and revenues between 1 9 8 3 and 1 9 9 2

Cracker Barrel, which operates restaurants and gift shops, reported dramatic growth in earnings and revenues between 1983 and 1992. During this period, earnings grew from $0.08 per share in 1983 to $0.78 per share in 1993. The dividends paid in 1993 amounted to only $0.02 per share. The earnings growth rate was expected to ease to 15% a year from 1994 to 1998, and to 6% a year after that. The payout ratio is expected to increase to 10% from 1994 to 1998, and to 50% after that. The beta of the stock is currently 1.55, but it is expected to decline to 1.25 for the 1994-98 time period and to 1.10 after that. The treasury bond rate is 7%. The market risk premium is 5.5%
Estimate the P/E ratio for Cracker Barrel.

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