Fontaine inc recently reported net income of 7 million it


Fontaine Inc. recently reported net income of $7 million. It has 770,000 shares of common stock, which currently trades at $25 a share. Fontaine continues to expand and anticipates that 1 year from now, its net income will be $10.15 million. Over the next year it also anticipates issuing an additional 231,000 shares of stock so that 1 year from now it will have 1,001,000 shares of common stock. Assuming Fontaine's price/earnings ratio remains at its current level, what will be its stock price 1 year from now? Round your answer to the nearest cent.

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Financial Management: Fontaine inc recently reported net income of 7 million it
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