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Problem:

You have found the following historical information for the Daniela Company: Stock Price Year 1= $50.25;EPS= 2.50 Stock Price Year 2= $59.12;EPS= 2.63 Stock Price Year 3= $68.34;EPS= 2.86 Stock Price Year 4= $61.50; EPS= 3.00 Earnings are expected to grow at 14 percent for the next year.

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Question: Using the company's historical average PE as a benchmark, what is the target stock price in one year?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166108

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