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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

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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 Year 1 High price Low price EPS $85.32 68.14 6.45 Year 2 $94.32 79.32 8.87 Year 3 $115.32 84.76 8.53 Year 4 $12739 105.32 10.12 Earnings are expected to grow at 5 percent over the next year. a. What is the 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.) b. What is the low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e... 32.16.) High target price b. Low target price

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