Calculate high and low stock price for the next year

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Reference no: EM131070618

If you look at stock prices over any year, you will find a high and low stock price for the year. Instead of a single benchmark PE ratio, we now have a high and low PE ratio for each year. We can use these ratios to calculate a high and a low stock price for the next year. Suppose we have the following information on a particular company over the past four years: Year 1 Year 2 Year 3 Year 4 High price $ 98.50 $ 122.10 $ 131.50 $ 148.13 Low price 73.33 89.44 70.12 116.65 EPS 7.78 9.53 10.61 12.00 Earnings are projected to grow at 9 percent over the next year.

Reference no: EM131070618

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