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A Company Currently Has Earnings Per Share of $4

Question 112

Multiple Choice

A company currently has earnings per share of $4.15. Earnings are expected to grow at 8.4 percent per year. If the P/E ratio is 21, what is the expected stock price in two years?


A) $98.73
B) $87.15
C) $97.16
D) $102.41
E) $92.22

Correct Answer:

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