Data for a fictitious industrial stock index are given below.

The average annual compound growth rate of EPS is approximately 28 per cent. The average P/E is 20.33. If the earnings growth rate continues at 28 per cent throughout 2009, and the P/E increases to 20, what will the closing index price be for 2009?

Question

Data for a fictitious industrial stock index are given below.
  
The average annual compound growth rate of EPS is approximately 28 per cent. The average P/E is 20.33. If the earnings growth rate continues at 28 per cent throughout 2009, and the P/E increases to 20, what will the closing index price be for 2009?

Quizplus · Accepted Answer

The Answer of Data for a fictitious industrial stock index are given below.
  
The average annual compound growth rate of EPS is approximately 28 per cent. The average P/E is 20.33. If the earnings growth rate continues at 28 per cent throughout 2009, and the P/E increases to 20, what will the closing index price be for 2009?

Data for a Fictitious Industrial Stock Index Are Given Below