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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
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 Year Year Year
High price $ $ $ $
Low price
EPS
Earnings are expected to grow at percent over the next year.
What is the high target stock price over the next year?
Note: Do not round intermediate calculations and round your answer to decimal places, eg
What is the low target stock price over the next year?
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