Assuming ferrells priceearnings ratio remains at its


Ferrell Inc. recently reported net income of $6 million. It has 520,000 shares of common stock, which currently trades at $27 a share. Ferrell continues to expand and anticipates that 1 year from now, its net income will be $9 million. Over the next year, it also anticipates issuing an additional 156,000 shares of stock so that 1 year from now it will have 676,000 shares of common stock. Assuming Ferrell's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Do not round intermediate calculations. Round your answer to the nearest cent.

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Finance Basics: Assuming ferrells priceearnings ratio remains at its
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