Problem 8-31 Stock Valuation and PE [LO2] Penguin, Incorporated, has balance sheet equity of $6.5 million. At the same time, the income statement shows net income of $780,000. The company paid dividends of $397,800 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 29, what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price

Penguin, Incorporated, has balance sheet equity of $6.5 million. At the same time, the income statement shows net income of $780,000. The company paid dividends of $397,800 and has 120,000 shares of stock outstanding. If the benchmark PE ratio is 29 , what is the target stock price in one year? Assume the firm will grow at the sustainable growth rate. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)