Following is the financial information of two companies. Calculate the price of the two companies. PEG ratio Earnings Per Share Annual Growth rate of Earnings ABC Inc. 8 $5.0 10% XYZ Inc 4 $2.5 40% a) What is the stock price of ABC Inc.? b) What is the stock price of XYZ Inc.?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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I need a and b answer

Following is the financial information
of two companies. Calculate the price
of the two companies.
PEG ratio
ABC
Inc.
8
Earnings Per Share $5.0
Annual Growth
rate of Earnings
XYZ
Inc
4
$2.5
10% 40%
a) What is the stock price of ABC Inc.?
b) What is the stock price of XYZ Inc.?
Transcribed Image Text:Following is the financial information of two companies. Calculate the price of the two companies. PEG ratio ABC Inc. 8 Earnings Per Share $5.0 Annual Growth rate of Earnings XYZ Inc 4 $2.5 10% 40% a) What is the stock price of ABC Inc.? b) What is the stock price of XYZ Inc.?
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