Problem:
Plush Pilots, Inc., has balance sheet equity of $6.1 million. At the same time, the income statement shows net income of $927,200. The company paid dividends of $486,780 and has 200,000 shares of stock outstanding.
Required:
Question: If the benchmark PE ratio is 25, what is the target stock price in one year?
Note: Explain all steps comprehensively.