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:High price.Low priceEPSYear 1$ 86.7769.096.50Year 2 Year 3$97.67 $118.9781.478.9282.118.58Year 4$130.84108.0210.17Earnings are expected to grow at 8 percent over the next year.a. What is the high target stock price over the next year?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.b. What is the low target stock price over the next year?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.> Answer is complete but not entirely correct.a. High target price$ 136.23b. Low target price$ 101.58

Shares, moreover, alluded to as stocks or values, speak to proprietorship stakes in a company and…

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 $ 86.77 69.09 6.50 Year 2 Year 3 $97.67 $118.97 81.47 8.92 a. High target price b. Low target price High price Low price EPS Earnings are expected to grow at 8 percent over the next year. a. What is the high target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. 82.11 8.58 Answer is complete but not entirely correct. $ 136.23 X $ 101.58 Year 4 $130.84 108.02 10.17

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 $ 86.77 69.09 6.50 Year 2 Year 3 $97.67 $118.97 81.47 8.92 a. High target price b. Low target price High price Low price EPS Earnings are expected to grow at 8 percent over the next year. a. What is the high target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the low target stock price over the next year? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. 82.11 8.58 Answer is complete but not entirely correct. $ 136.23 X $ 101.58 Year 4 $130.84 108.02 10.17

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

Section: Chapter Questions

Problem 1PS

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A firm belongs to an industry whose median P/E ratio is 20.65. This P/E ratio is expected to be constant in the next several years. The firm's earnings per share this year (EPS_0) is $7.14. The earnings per share is expected to grow at a rate of 4.63 percent per year in the next five years. Calculate the expected price of this firm's stock three years from today. $168.88 $154.27 $154.27 $147.44 $211.10
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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 over the past four years: Year 1 Year 2 Year 3 Year 4 High price $ 98.70 $ $ $131.70 Low price 73.53 EPS 122.30 89.64 148.33 70.32 116.85 7.98 9.73 10.81 12.20 Earnings are projected to grow at 5 percent over the next year. a. What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is your low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. High target stock price b. Low target stock price 4

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