What is the implied return on the company stock

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Ramsay Corp. currently has an EPS of $3.00, and the benchmark PE for the company is 29. Earnings are expected to grow at 5 percent per year.

a. What is your estimate of the current stock price? (Round your answer to 2 decimal places, e.g., 32.16.)

Current stock price           $  

b. 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.)

Target stock price           $  

c. 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. Round your answer to the nearest whole percent.)

Implied return of stock             %

Reference no: EM131892242

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