Firm P-E ratio remains at its current level

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Reference no: EM131939882

Valuation using P/E ratio Nevada inc. recently reported net income of $8 million. It has 540,000 shares of common stock, which current trades at $21 a share. The CEO anticipates that 1 year from now, its net income will be $13.2 million. Over the next year it also anticipates issuing an additional 81,000 shares of stock. Assume that firm's P/E ratio remains at its current level, what will be its stock price 1 year from now?

Reference no: EM131939882

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