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currently, a firm has an EPS of $2.08 and a benchmark PE of 12.7. Earning are expected to grow by 3.8 percent annually. What is the estimated current stock price?

Respuesta :

Answer:

$26.42

Explanation:

According to the given situation, the computation of the estimated current stock price is shown below:-

Estimated current stock price = Earning per share × PE ratio

= $2.08 × 12.7

= $26.42

Therefore for computing the estimated current stock price we simply applied the above formula and ignore all other value as they are not relevant.

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