Summers Corp. currently has an EPS of $2.50, and the benchmark PE for the company is 24.
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Question:
Summers Corp. currently has an EPS of $2.50, and the benchmark PE for the company is 24. Earnings are expected to grow at 6 percent per year. |
a. | What is your estimate of the current stock price?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Current stock price | $ |
b. | What is the target stock price in one year?(Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
Target stock price | $ |
c. | Assuming the company pays no dividends, what is the implied return on the companys stock over the next year?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Implied return of stock | % |
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