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The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio

The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. a. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio

Essentials Of Investments
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
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The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio
Transcribed Image Text:The current price of Parador Industries stock is $82 per share. Current earnings per share are $3.50, the earnings growth rate is 3 percent, and Parador does not pay a dividend. The expected return on Parador stock is 17 percent. 6. Calculate the earnings per share one-year ahead. (Round your answer to 2 decimal places.) Eaming per share b. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.) P/E ratio
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