Reference no: EM131971907

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	$99.40	$123.00	$132.40	$149.03
Low price	74.23	90.34	71.02	117.55
EPS	8.68	10.43	11.51	12.90

Earnings are projected to grow at 6 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 $__________