### What is the implied return on the company stock

Assignment Help Financial Management
##### Reference no: EM131300344

Sully Corp. currently has an EPS of \$2.61, and the benchmark PE ratio for the company is 25. Earnings are expected to grow at 5 percent per year.

What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price            \$

What is the target stock price in one year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price in one year            \$

Assuming the company pays no dividends, what is the implied return on the company's stock over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.2.)

Implied return            %

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