Problem 8-26 P/E Ratio Model and Future Price (LG8-7)

New York Times Co. (NYT) recently earned a profit of $1.81 per share and has a P/E ratio of 19.50. The dividend has been growing at a 7.50 percent rate over the past six years.

If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 23 in four years? (Round your answers to 2 decimal places.)

Stock price	$
Stock price with new P/E	$