Comcast Corporation currently sells at $32 per share. A research analyst at a major Wall Street firm recently published a report that estimated that next year's earnings will equal $4 per share and the company will have a dividend payout of 50%. Assume that the research report is very accurate. Calculate Comcast Corporation's P/E ratio (price-earnings multiple). Suppose that an investor expects earnings to grow by 10 percent a year. What is the projected price of the stock next year if the P/E ratio remains unchanged? The research analyst in his research report estimated that the payout ratio will remain the same in the near future. Assume that the expected growth rate of dividends is 10%, and investors have a required rate of return of 16 percent. Should you purchase Comcast stock today? Why or why not? If Comcast Corporation makes a surprise announcement saying that they will increase the dividend payout what would you expect to happen to the P/E ratio. Explain your