Global Warning's EPS for the current year is $2.75 and its current P/E ratio is 50. You have forecasted that EPS will grow by 10% but the P/E ratio will fall to 40

What do you expect the price of a share of GW's stock to be at the end of next year?
A) $110
B) $121
C) $137.50
D) $151.25

Answer: B

Business

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