What is estimate of current stock price-target stock price

Assignment Help Financial Management

Reference no: EM131049787

Sully Corp. currently has an EPS of $2.27, and the benchmark PE ratio for the company is 23. Earnings are expected to grow at 5.5 percent per year.

Requirement 1: What is your estimate of the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Stock price $

Requirement 2: What is the target stock price in one year? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Stock price in one year $

Requirement 3: Assuming that the company pays no dividends, what is the implied return on the company's stock over the next year? (Do not round intermediate calculations. Round your answer to 1 decimal place (e.g., 32.2).) Implied return %

Reference no: EM131049787

Questions Cloud

Briefly describe the article marriage by the numbers : Explain & provide specific examples of how media acts as an agent of gender development. Briefly describe the article, "Marriage by the Numbers" and its relevancy to the "Don't be Happy, Worry" article.

Company acceptable minimum return on capital : A company's acceptable minimum return on capital (i.e., WACC) is 12%. If the debt/equity ratio is 1:1, and the after-tax cost of debt is 5% (the company is in the 40% tax baracket), what is the corresponding minimum acceptable return on equity?

Prove that this decomposition is unique : An important tool in the development of the strain tensor was the decomposition (16.79) of a matrix M into its anti-symmetric and symmetric parts. Prove that this decomposition is unique.

Design and develop a new set of courses : Professor Xavier wants to design and develop a new set of courses, all with the goal of helping students learn more about set theory and algebra; probably five or six courses altogether.

What is estimate of current stock price-target stock price : Sully Corp. currently has an EPS of $2.27, and the benchmark PE ratio for the company is 23. Earnings are expected to grow at 5.5 percent per year. What is your estimate of the current stock price? What is the target stock price in one year?

Explain differences between technical and academic writing : Differences Between Technical and Academic Writing. How do you distinguish the research goals of technical writing versus academic writing? Share examples from your own professional and academic lives.

Pressure forces are independent of direction : Assume that with respect to one set of axes Σ is diagonal but that not all three diagonal elements are equal. (For example, σ11≠σ33.) It is not hard to come up with a rotation - that of Equation (15.36) will do - such that in the rotated system σ'..

What is the firm expected rate of return : In a bankruptcy, preferred shareholders come before bondholders. Compared to common stocks, preferred stock is less risky to the holders of the security. Corporations cannot buy the preferred stocks of other corporation. Dividends on preferred stocks..

Briefly explain the article do not be happy worry : Explain the impact that false study results, like the Harvard study (mentioned in the article "Don't Be Happy, Worry") have over women and our society in general. Explain & provide specific examples of how media acts as an agent of gender develo..

User Account

All Pages