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Plase not not solve using exel MERCK Corp. currently has an EPS of $4.65, and the benchmark PE for the company is 19. Earnings are
Plase not not solve using exel
MERCK Corp. currently has an EPS of $4.65, and the benchmark PE for the company is 19. Earnings are expected to grow at 7 percent per year.
a. Report your estimate of the current stock price.
b. What do you expect the target stock price in one year to be?
c. If the company pays no dividends, what is the implied return on the companys stock over the next year?
Hint: PE ratio (Price/Earnings Ratio = Price per share/ EPS where EPS = earnings per share)
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