A Firm Has a Current EPS of $1

question 90

Multiple Choice

A firm has a current EPS of $1.63 and a benchmark PE of 11.7. Earnings are expected to grow 2.6 percent annually. What is the target stock price in one year?

• A) $19.57
• B) $22.89
• C) $19.07
• D) $20.14
• E) $21.08

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Definitions:

Exxon Mobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

Consumer Goods

Goods produced for present consumption.

Capital Goods

Long-lasting tangible items that businesses use to produce goods or services, such as machinery, buildings, and equipment.

Technological Improvements

Enhancements or advancements in technology that increase productivity or efficiency in processes, products, or services.