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If you look at stock prices over any year, you will find a high and low...

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 $ 99.60 $ 123.20 $ 132.60 $ 149.23
  Low price 74.43 90.54 71.22 117.75
  EPS 8.88 10.63 11.71 13.10

  

Earnings are projected to grow at 8 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

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