a common way to value a share of stock in a company pays dividends its a value the difference over the next five years or so then by the terminal stock price using a benchmark PE ratio suppose the company just paid a dividend of $1.4 the dividends are expected to grow at 14% over the next five years in five years thats made a payout ratio is 40% in the bench my PE ratio is 26

what is the stock price today assuming are required return of 12% on the stock