Problem:
You have found the following historical information for the Daniela Company: Stock price Year 1,2,3 4, $51.90 $ 61.32 $ 70.54 $ 64.25 EPS Year 1,2,3,4 2.72, 2.84 3.12 3.33 Earnings are expected to grow at 17 percent for the next year.
Requirement:
Question: Using the company's historical average PE as a benchmark, what is the target stock price in one year?
Note: Please show guided help with steps and answer.