What is the high target stock price in one year

Assignment Help Financial Management

Reference no: EM13883189

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 Year 2 Year 3 Year 4 High price $90.25 $105.71 $127.73 $139.12 Low price 71.37 86.63 75.75 114.50 EPS 6.62 9.04 8.70 10.29 Earnings are expected to grow at 8 percent for the next year.

Required:

1. What is the high target stock price in one year?

2. What is the low target stock price in one year?

Reference no: EM13883189

Questions Cloud

Pet store business-what is the beta of assets : Katy's Kitten Emporium (KKE) is a thriving pet store business. You would like to understand the market risk of the KKE and are looking to find its Beta of the Assets. KKE's Beta of Equity is 1.7, the beta of debt is 0.2, and the tax rate is 29%. If K..

Expected return on portfolio-equally invested in two assets : A stock has a beta of 1.15 and an expected return of 13 percent. A risk-free asset currently earns 2.8 percent. a. What is the expected return on a portfolio that is equally invested in the two assets?

After the dividend is paid-farrah owns : Farrah owns 5,000 shares of stock in DAS, Inc. with a market value of $15,000.DAS declares a 20% stock dividend. After the dividend is paid, Farrah owns

Announces is quarterly dividend will increase : Dew Drop In, Inc. announces is quarterly dividend will increase from $3.80 to $4.00. After the announcement, the price of Dew Drop In, Inc.'s stock drops.

What is the high target stock price in one year : 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 p..

What is the projects NPV : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.88 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

What is the stocks value per share : Cisco is expected to generate $300 million in free cash flow next year, and FCF is expected to grow at a constant rate of 5% per year, indefinitely. Cisco has no debt or preferred stock, and its WACC is 12%. If Cisco has 25 million shares outstanding..

What is the companys current stock price : B of A has a Beta of 1.65, and the current environment requires a market risk premium of 6.00% after accounting for a risk-free rate of 4.00%. The company is expected to pay a dividend of $3.00 (D1) and that dividend is expected to grow at a constant..

Bond with an invoice price-what is the clean price of bond : You purchase a bond with an invoice price of $1152.32. The bond has a coupon rate of 8.39 percent, and there are 4 months to the next semi annual coupon date. What is the clean price of the bond?

User Account

All Pages