1 In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.20. The dividends are expected to grow at 15 percent over the next five years. The company has a payout ratio of 35 percent and a benchmark PE of 22. The required return is 11 percent. 8 01:27:51 What are the projected dividends for each of the next five years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Year 1 Year 2 Year 3 Year 4 Year 5 What is the EPS in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) EPS in 5 years What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price in 5 years