Reference no: EM132010320

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 $ 86.77 $ 97.67 $ 118.97 $ 130.84 Low price 69.09 81.47 82.11 108.02 EPS 6.50 8.92 8.58 10.17 Earnings are expected to grow at 8 percent over the next year. What is the high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) High target price $ What is the low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Low target price $