Question
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single
If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: |
Year 1 | Year 2 | Year 3 | Year 4 | ||||||||||||
High price | $ | 99.70 | $ | 123.30 | $ | 132.70 | $ | 149.33 | |||||||
Low price | 74.53 | 90.64 | 71.32 | 117.85 | |||||||||||
EPS | 8.98 | 10.73 | 11.81 | 13.20 | |||||||||||
Earnings are projected to grow at 9 percent over the next year. |
What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
High target stock price ?
What is your low target stock price over the next year? |
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