I am not sure where, to begin with, this problem... "You have found the following historical information for...

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Finance

I am not sure where,to begin with, this problem...
"You have found thefollowing historical information for DEF Company:
                        Year1       Year2        Year3        Year 4
StockPrice       $46.29        $49.74         $54.55         $57.07
EPS                 $2.04 $2.9   $2.81    $3.78
Earnings are expectedto grow at 8 percent for the next year. Using the company'shistorical average PE as a benchmark, what is the target stockprice in one year?"

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4.4 Ratings (603 Votes)

Step1 Calculation of Average PriceEarnings Ratio PE Ratio PriceEarnings Ratio PE Ratio Current Stock Price Earnings per share PE Ratio Year 1 2269 Times 4629 204 per share PE See Answer

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I am not sure where,to begin with, this problem..."You have found thefollowing historical information for DEF Company: Year1 Year2 Year3 Year 4StockPrice $46.29 $49.74 $54.55 $57.07EPS $2.04 $2.9 $2.81 $3.78Earnings are expectedto grow at 8 percent for the next year. Using the company'shistorical average PE as a benchmark, what is the target stockprice in one year?"