Over the last 10 years, a company has had an average share price of $11.72 and averageearnings per share (EPS) of $1.38.What is the expected stock price 7 years from now if the current EPS are $1.85 and youforecast the EPS growth rate to be 9.9% per year?Numeric Response

The expected stock price is the price at which a stock will be traded at a future date. The stock…

Answered: Over the last 10 years, a company has…

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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Over the last 10 years, a company has had an average share price of $11.72 and average earnings per share (EPS) of $1.38. What is the expected stock price 7 years from now if the current EPS are $1.85 and you forecast the EPS growth rate to be 9.9% per year?