Consider a company that currently has earnings of $4 per share. If these earnings are expected to grow at a rate of 5 percent per year for four years, and the typical P/E ratio for this industry is 20, the expected price of a share of this stock four years from now is closest to:

Question

Quizplus · Accepted Answer

The Answer of Consider a company that currently has earnings of $4 per share. If these earnings are expected to grow at a rate of 5 percent per year for four years, and the typical P/E ratio for this industry is 20, the expected price of a share of this stock four years from now is closest to:

Consider a Company That Currently Has Earnings of $4 Per