Question
Problem 11-15 - PE Model Suppose that a security earned $4.53 per share for the year and has a price of $85 per share. Earnings
Problem 11-15 - PE Model
Suppose that a security earned $4.53 per share for the year and has a price of $85 per share. Earnings are expected to grow at 0.12 % annually for the next five years. Also suppose the PE multiple is expected to increase 10% between now and five years.
| EPS | $4.53 |
|---|---|
| Price | $85 |
| Growth Rate | 12% |
| PE Change | 10% |
| Years | 5 |
What is the expected price in five years?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Money Banking And Financial Markets
Authors: Stephen G. Cecchetti
1st Edition
0072452692, 9780072452693
