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  3. question 3: merck corp. currently has an eps of $4

Question 3: MERCK Corp. currently has an EPS of $4.65, and the benchmark PE for...

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Question 3: MERCK Corp. currently has an EPS of $4.65, and the benchmark PE for the company is 19. Earnings are expected to grow at 7 percent per year. a. Report your estimate of the current stock price. 4 points b. What do you expect the target stock price in one year to be? 4 points c. If the company pays no dividends, what is the implied return on the company's stock over the next year? 2 points Hint: PE ratio (Price/Earnings Ratio = Price per share/ EPS where EPS = earnings per share)

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