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As CEO of your firm, Tata Tech, which makes computer components, you have been able to grow its dividends by 8% per year to a
As CEO of your firm, Tata Tech, which makes computer components, you have been able to grow its dividends by 8% per year to a recent $2 per share. You expect this growth to continue. As a result, the stock price has risen to $65 and has a P/E ratio of 16.25. Tomorrow, you are schedule to meet with some stockholders and financial analysts. To prepare for the meeting, you need to know what the total return the shareholders seem to expect and estimate where the Tata stock price may be in 3 years, assuming a constant dividend payout ratio and P/E ratio
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