Sully Corp. currently has an EPS of $2.35, and the benchmark PE ratio for the company is 21. Earnings are expected to grow at 7 percent per year.
Requirement 1:
What is your estimate of the current stock price? (Do not round intermediate calculations.
Stock price $
Requirement 2:
What is the target stock price in one year? (Do not round intermediate calculations.
Stock price in one year $
Requirement 3:
Assuming that the company pays no dividends, what is the implied return on the company's stock over the next year? (Do not round intermediate calculations.
Implied return %
2 answers
27.35
^^^that answer was wrong
1 answer