Calculate the estimated target price

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Reference no: EM131896650

Company ZZ is in the electronics industry. The stocks of companies in that industry have consistently had P/E ratios that have averaged 19.6. Company ZZ reported net income over the past 4 years of $102,000, $112,000, $126,000, and most recently $141,000 for the year ended 12/31/16. There were 75,000 shares of common stock outstanding during each of those years.

Calculate the estimated ‘target price’ for 1 share of Company ZZ stock one year into the future at 12/31/17:

Reference no: EM131896650

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