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formulas Paste BIU. Cells Editing Alignment Number Conditional Format as Cell Formatting Table - Styles Styles Clipboard Font A1 A B c D E F

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Paste BIU. Cells Editing Alignment Number Conditional Format as Cell Formatting" Table - Styles Styles Clipboard Font A1 A B c D E F G I 1 2 3 The Perfect Rose Co. has earnings of $2.35 per share. The benchmark PE for the company is 18. What stock price would you consider appropriate? What if the benchmark PE were 21? 4 5 6 7 8 EPS Benchmark PE Benchmark PE 2.35 18 21 9 10 11 12 Complete the following analysis. Do not hard code values in your calculations. 13 Stock price at a PE of 18 14 Stock price at a PE of 21 15 16 17 18 19 5 o TU Font Styles AI BRE Calibri IH 11 96 FO Be Paste BIU- Cells Alignment Number Conditional Format as Cell Formatting Table Styles Styles Editing Clipboard Font 6 Al A B D E F G H 1 J K 1 2 3 Estes Park Corp. pays a constant $7.80 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 11.2 percent, what is the current share price? 4 5 6 7 Current dividend $ Years until dividend ceases Required return 7.80 13 11.2% 00 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 Share price 14 15 16 17

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