Question
A stock just paid an annual dividend of $7.7. The dividend is expected to grow by 5% 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 5% 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%.
What should be the current stock price?
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Inside Private Equity
Authors: James M. Kocis, James C. Bachman IV, Austin M. Long III, Craig J. Nickels
1st Edition
0470421894, 978-0470421895
