Homework Answers
Current P/E = Current Share Price / Current EPS
= $43 / [$8,000,000 / 280,000]
= $43 / $28.57 = 1.505
P/E in 1 year = Share Price in 1 year / EPS in 1 year
1.505 = P1 / [$13,600,000 / 350,000]
1.505 = P1 / $38.86
P1 = 1.505 * $38.86 = $58.48
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