Pacific Storage expects to have earnings per share of $5.25 in 2005 and $5.65 in 2006 The average price-earnings ratio for General's industry is 10X (times).Pacific Storage has traditionally had a P/E ratio 12% higher than the industry and in 2005 it is expected to be 15 percent higher than the industry.Calculate the expected price of Pacific's stock price in 2005 and 2006 based on expectations of EPS and P/E ratios.

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The Answer of Pacific Storage expects to have earnings per share of $5.25 in 2005 and $5.65 in 2006 The average price-earnings ratio for General's industry is 10X (times).Pacific Storage has traditionally had a P/E ratio 12% higher than the industry and in 2005 it is expected to be 15 percent higher than the industry.Calculate the expected price of Pacific's stock price in 2005 and 2006 based on expectations of EPS and P/E ratios.

Pacific Storage Expects to Have Earnings Per Share of $5