Problem 7.26 – Sunset Corp.
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition and 11th Edition
The Sunset Corp. currently has an EPS of $4.25 and the benchmark PE for the company is 19. Earnings are expected to grow at 5 percent per year. (Your numbers will vary). Determine the stock price today, the stock price in one year, and the implied return.
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Your numbers will vary.