Finance

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Sully Corp. currently has an EPS of $2.35, and the benchmark PE ratio for the company is 21. Earnings are expected to grow at 7 percent per year.

Requirement 1:
What is your estimate of the current stock price? (Do not round intermediate calculations.

Stock price $

Requirement 2:
What is the target stock price in one year? (Do not round intermediate calculations.

Stock price in one year $

Requirement 3:
Assuming that the company pays no dividends, what is the implied return on the company's stock over the next year? (Do not round intermediate calculations.

Implied return %

  • Finance -

    27.35

  • Finance -

    ^^^that answer was wrong

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