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If the forecast turns out to be correct and its price/earnings (p/e) ratio does not change, what does the company's management expect its stock price to be one year from now?

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Final answer:

If the forecast is correct and the p/e ratio does not change, the company's management expects the stock price to remain the same as the current price.

Step-by-step explanation:

The question asks about the stock price of a company one year from now, assuming the forecast is correct and the price/earnings (p/e) ratio does not change. In this case, the company's management would expect the stock price to remain the same as the current price.

For example, if the stock price is currently $100 per share and the forecast indicates it will not change, then the management would expect the stock price to be $100 per share one year from now.

It is important to note that stock prices are influenced by various factors, and changes in expectations can lead to shifts in stock prices. Therefore, this assumption may not always hold true in reality.

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