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another way to price a stock is to value the dividends and then find a terminal stock price using a benchmark P/E ratio. Doobie brothers
another way to price a stock is to value the dividends and then find a "terminal" stock price using a benchmark P/E ratio. Doobie brothers smoke shop just paid a $2.00/share yearly dividend which will grow 5%p.a. for the next two years. In year-2, the payout ratio will be 50% and the benchmark P/E will be 20.
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