In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.23. The dividends are expected to grow at 18 percent over the next five years. In five years, the estimated payout ratio will be 30 percent and a benchmark PE will be 18. The required return is 14 percent. What are the projected dividends for each of the next five years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Year 1 Year 2 Year 3 Year 4 Year 5 What is the EPS in five years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. EPS in 5 years What is the target stock price in five years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Stock price in 5 years

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.23. The dividends are expected to grow at 18 percent over the next five years. In five years, the estimated payout ratio will be 30 percent and a benchmark PE will be 18 . The required return is 14 percent. What are the projected dividends for each of the next five years? Note: Do not round intermediate calculations and round your answers to 2 decimal places, ..9,32.16. What is the EPS in five years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16 . What is the target stock price in five years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16