Question
Given the information below for Sugar Rush, compute the expected share price by the end of 2023 using price P/E. Assume that the historical arithmetic
Given the information below for Sugar Rush, compute the expected share price by the end of 2023 using price P/E. Assume that the historical arithmetic average growth rates will remain the same. For 2018, the EPS was $4.50. Hint: calculate the average EPS growth rate and the average P/E.
| Year | 2019 | 2020 | 2021 | 2022 |
| Price | $65 | $58 | $76 | $98 |
| EPS | $4.50 | $4.00 | $5.50 | $6.00 |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
2nd Edition
0073530638, 9780073530635
