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GE has an expected dividend (ie. dividend next year, D1) of $1.10 per share, current EPS of $2 and expected EPS growth of 10% per
GE has an expected dividend (ie. dividend next year, D1) of $1.10 per share, current EPS of $2 and expected EPS growth of 10% per year. Based in a typical P/E ratio of 14, the expected price in two years will be $33.88 in two years (i.e. P2). According to the discounted dividend value model, what is the present value of GE using a discount rate of 6% and a two years analysis period? OA. $20.52 OB. $27.96 OC. $32.27 D. $36.58
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