Question

You have found the following historical information for the Daniela Company over the past four years: Year 1 Year 2 Year 3 Year 4 Stock price $ 51.45 $ 60.72 $ 69.94 $ 63.50 EPS 2.66 2.78 3.06 3.24 Earnings are expected to grow at 14 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Target stock price $

Answer 1

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121 e DW 1) ENG 18:49 12 01 2000 | AA AB AC AD AE AF AG AH AI AJ AK AL AM AN YEAR PE B/C 1 PRICE EPS B 51.45 2.66 60.72 2.78 69.94 3.06 63.50 3.24 TOTAL AVERAGE PE 19.3421 21.8417 22.8562 19.5988 83.6388 20.9097 EPS = GROWTH RATE = EPS AFTER A YEAR = 3.24 14% 3.6936 PRICE AFTER A YEAR = AVERAGE PE X EPS AFTER A YEAR PRICE AFTER A YEAR = 20.9097 X 3.6936 ANSWER PRICE AFTER A YEAR = 77.23 HIGH LOW TARGET PRICE STOCK DIV NAV HEDGE FUND ME EV PE EPS DIV ABNORMAL deberk MARGIN MONEY marginal lax PB ROPI APV ROSS price quole EVA ... 5