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Sunset Corporation currently has an EPS of $4.25, and the benchmark PE for the company is 19 . Earnings are expected to grow at 5
Sunset Corporation currently has an EPS of $4.25, and the benchmark PE for the company is 19 . Earnings are expected to grow at 5 percent per year. a. What is your estimate of the current stock price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the target stock price in one year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. c. Assuming that the company pays no dividends, what is the implied return on the company's stock over the next year? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16
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