What is your estimate of current stock price

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Reference no: EM132020523

Summers Corp. currently has an EPS of $2.20, and the benchmark PE for the company is 21. Earnings are expected to grow at 10 percent per year.

a. What is your estimate of the current stock price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current stock price $   

b. What is the target stock price in one year? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

Target stock price $   

c. Assuming the company pays no dividends, what is the implied return on the company’s stock over the next year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Implied return of stock %

Reference no: EM132020523

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