In this assignment, you will solve the problems below.

Instructions: For this assignment, you apply valuation models to calculate stock price and measure company valuation.

Q1. P/E ratio analysis For the period 2010 2019, the average high and low P/E for Post Inc. is 15.25 and 10. 25, respectively.

a) Assume that analysts determine that Post Inc.s P/E ratio is 2020 should be 7 percent above the average high Post Inc. P/E ratio for the last 10 years. If the projected earnings per share are $2.15 for 2020, what would be the stock price?

b) Assume that analysts determine that Post Inc.s P/E ratio is 2020 should be 15 percent below the average low Post Inc. P/E for the last 10 years. What would the stock price be based on the anticipated earnings per share of $1.50?