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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 0.1% 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?
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