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(6 pts) ABC company current stock price is $50. The most recent Earnings per Share reported was $3.00 (assume this EPS number was just reported

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(6 pts) ABC company current stock price is $50. The most recent Earnings per Share reported was $3.00 (assume this EPS number was just reported yesterday). You expect the company's Earnings to increase by 8% next year and 7% the following year. In two years you are expecting the company's stock will trade at a P/E multiple of 22. Your required rate of return for ABC is 10%. If you expect the company to maintain a 30% dividend payout ratio, fill in the following information used to estimate the intrinsic value (you do not have to estimate the intrinsic value just fill in the blanks below) Yr 1 EPS = Yr 2 EPS = Yr. 2 Div = Yr 1 Div = Yr 2 Horizon Value =

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