Reference no: EM131853563

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 $ 99.10 $ 122.70 $ 132.10 $ 148.73 Low price 73.93 90.04 70.72 117.25 EPS 8.38 10.13 11.21 12.60 Earnings are projected to grow at 9 percent over the next year. What is your high target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) High target stock price $ What is your low target stock price over the next year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Low target stock price $