Using the companys historical average pe as a benchmark


You have found the following historical information for the Daniela Company over the past four years:

Year 1 Stock price $ 51.90

Year 2 Stock price $ 61.32

Year 3 Stock price $ 70.54

Year 4 Stock price $ 64.25

EPS

Year 1: 2.72

Year 2: 2.84

Year 3: 3.12

Year 4: 3.33

Earnings are expected to grow at 17 percent for the next year. Using the company’s historical average PE as a benchmark, what is the target stock price one year from today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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Financial Management: Using the companys historical average pe as a benchmark
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