General Electric Company (GE) is one of the world's leading infrastructure and financial services company. On March 8, 2013 the company's trailing (twelve months) earnings per share was $1.35, and with a market price per share of $22, indicated a trailing price-earnings multiple of 16.3.

Required 1. According to Thomson Financial, the consensus forward price-earnings multiple is 12.85. What is the consensus forecasted earnings-per-share? Round answer to two decimal places.

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2. Using your rounded consensus forecast of future earnings-per-share from part one, and the current trailing price earnings multiple of 16.3, what should GE's target share price be? Round your answer to two decimal places.

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Is Thomson Financial, GE's one-year target price of $25 per share lower than or higher than your calculated target price?