Problem $7-28$ Stock Valuation and PE $[$LO $1]$

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:

Earnings are expected to grow at $8\mathrm{.}5$ percent over the next year.

a$.$ What is the high target stock price over the next year?

Note: Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the low target stock price over the next year?

Note: Do not round intermediate calculations and round your answer to $2$ decimal

places, e$.$g$.,32\mathrm{.}16.$