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4) (6 pts) You estimate that Company DD's EPS will be $4.00 next year and $5.00 in Year 2. You also expect the stock will

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4) (6 pts) You estimate that Company DD's EPS will be $4.00 next year and $5.00 in Year 2. You also expect the stock will sell for $90 at the end of 2 years. You estimate the c a 20% dividend payout ratio. a) ompany will have What is the implied ttm P/E multiple you are estimating the Co. DD will sell for at the end of year 2? Year 2 Implied ttm P/E multiple b) What are your estimates for dividends over the next 2 years? Div. yr. 1-_ Div. yr. 2 = What is the price you would be willing to pay (intrinsic value) for the stock today if you have a required rate of return of 6.9%? c) Your estimate of stock price today-$

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