The P/E ratio for Dragon Inc. is 14.52. The company earned $6.05 per share and paid a $1.25 dividend last year. Analysts estimate that the company will grow at an average annual rate of 10.6% over the next 4 years. Calculate the expected price of Dragons stock price in 4 years.

Question 19Answer

a.

27.16

b.

131.44

c.

145.38

d.

30.04