Question
A stock just paid an annual dividend of $7.7. The dividend is expected to grow by 3% per year for the next 4 years. In
A stock just paid an annual dividend of $7.7. The dividend is expected to grow by 3% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 25 and the payout ratio to be 60%.
The required rate of return is 8%.
Part 1
What should be the current stock price?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
