The current price of Parador Industries stock is $78 per share. Current earnings per share are $5.1, the earnings growth rate is 4 percent, and Parador does not pay a dividend. The expected return on Parador stock is 22 percent.
Required:
Question1. Calculate the earnings per share one-year ahead. Please provide all computation and formulas.
Question2. Calculate the P/E ratio one-year ahead. Please provide all computation and formulas.