Question $4$

$5$ pts

A stock is trading at $$50$ and the current EPS is $$3\mathrm{.}75.$ The EPS $5$ years back was $$3\mathrm{.}25$ and the earnings are expected to grow at $5$ year CAGR. Calculate the expected EPS at the end of next year.

$$4\mathrm{.}37$

$$4\mathrm{.}23$

$$3\mathrm{.}86$

$$4\mathrm{.}86$