What would the price be if the P-E ratio increased

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Reference no: EM131318859

New York Times Co. (NYT) recently earned a profit of $2.71 per share and has a P/E ratio of 19.95. The dividend has been growing at a 7.25 percent rate over the past six years.

If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 22 in four years? (Round your answers to 2 decimal places.)

Stock price $

Stock price with new P/E $

Reference no: EM131318859

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