Question
Walmart currently has earnings of $10 per share and that earnings per share are expected to grow by 2 percent per year. Using a mean
Walmart currently has earnings of $10 per share and that earnings per share are expected to grow by 2 percent per year. Using a mean industry PE ratio of 17 and the expected annual growth rate on the firm's existing earnings, the estimated stock price in three years would be:
- A. $185.82
- B. $175.00
- C. $194.84
- D. $180.41
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Financial Markets And Institutions
Authors: Jeff Madura
10th Edition
1285531507, 9781285531502
