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Question: The current price of Parador Industries stock is $66 per share. Current earnings per share are $3.6, the earnings growth rate is 4.5 percent, and Parador does not pay a dividend. The expected return on Parador stock is 20 percent.

1. Calculate the earning per share one-year ahead. (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Earning per share $

2. Calculate the P/E ratio one-year ahead. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

P/E ratio

Basic Finance, Finance

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