Question
You have found the following historical information for DEF Company: Year1Year 2Year 3Year 4 Stock Price$47.04$52.45$55.77$60.39 EPS$2.01$2.66$2.87$3.34 Earnings are expected to grow at 6 percent
You have found the following historical information for DEF Company:
Year1Year 2Year 3Year 4
Stock Price$47.04$52.45$55.77$60.39
EPS$2.01$2.66$2.87$3.34
Earnings are expected to grow at 6 percent for the next year. Using the company's historical average PE as a benchmark, what is the target stock price in one year?Answer to two decimals.
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
