Question

Stephens Inc (SI) has earnings of $150,000 this year, expects earnings to grow by 4% annually...

Stephens Inc (SI) has earnings of $150,000 this year, expects earnings to grow by 4% annually and has a P0/E1 ratio of 30. If SI can increase growth to 6% annually how much would the P0/E1 ratio increase? What would be the new value of SI?

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