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  3. if you look at stock prices over any year, you wil

If you look at stock prices over any year, you will find a high and...

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Accounting

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company: Year 1 Year 2 Year 3 Year 4 High price $ 99.90 $ 123.50 $ 132.90 $ 149.53 Low price 74.73 90.84 71.52 118.05 EPS 9.18 10.93 12.01 13.40 Earnings are projected to grow at 5 percent over the next year. What is your high target stock price over the next year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) High target stock price $ What is your low target stock price over the next year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Low target stock price $

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