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Ameth Growers has historically had a P/E ratio of 21.4. This ratio is considered a good estimate of the future ratio. The firm currently has an EPS of $2.34. These earnings are expected to increase by 3.4 percent next year. What is the expected price of this stock one year from now? a. $45.54 b. $48.43 c. $50.25 d. $51.78 e. $53.79

Ameth Growers has historically had a P/E ratio of 21.4. This ratio is considered a good estimate of the future ratio. The firm currently has an EPS of $2.34. These earnings are expected to increase by 3.4 percent next year. What is the expected price of this stock one year from now? a. $45.54 b. $48.43 c. $50.25 d. $51.78 e. $53.79

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter12: The Cost Of Capital
Section: Chapter Questions
Problem 23P
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What is the expected price of this stock one year from now on these financial accounting question?

Ameth Growers has historically had a P/E ratio of 21.4. This ratio is considered a good estimate of the future ratio. The firm currently has an EPS of $2.34. These earnings are expected to increase by 3.4 percent next year. What is the expected price of this stock one year from now? a. $45.54 b. $48.43 c. $50.25 d. $51.78 e. $53.79
Transcribed Image Text:Ameth Growers has historically had a P/E ratio of 21.4. This ratio is considered a good estimate of the future ratio. The firm currently has an EPS of $2.34. These earnings are expected to increase by 3.4 percent next year. What is the expected price of this stock one year from now? a. $45.54 b. $48.43 c. $50.25 d. $51.78 e. $53.79
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