Historically, Jones Trucking has had a price-to- earnings ratio of 14.6. The firm has a current net income of $92,000 with 85,000 shares of stock outstanding. The EPS growth rate is 4.5 percent. What is the expected price of this stock one year from now? A. $15.32 B. $15.85 C. $16.41 D. $16.51 E. $17.10

Historically, Jones Trucking has had a price-to- earnings ratio of 14.6. The firm has a current net income of $92,000 with 85,000 shares of stock outstanding. The EPS growth rate is 4.5 percent. What is the expected price of this stock one year from now? A. $15.32 B. $15.85 C. $16.41 D. $16.51 E. $17.10

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 16MC: Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid...

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