Domergue Corp. currently has an EPS of $2.80, and the benchmark PE for the company is 27. Earnings are expected to grow at 5 percent per year.

a. What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

c. Assuming the company pays no dividends, what is the implied return on the companys stock over the next year?