Problem 8.26 – Calculation of Stock Price, Target Price, and Implied Return
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Estimate the current stock price, target stock price in one year, and the implied return on the stock of Meadow Dew Corporation. Use the given earnings per share (EPS), benchmark price-to-earnings (PE) ratio, and the expected annual growth rate in earnings. Round your answers to two decimal places.
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