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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

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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 the next five years. In five years, the estimated payout ratio is 25 percent and the benchmark PE ratio is 22 What is the target stock price in five years? (Do not round intermediate calculations and round your ose a company just paid a dividend o answer to 2 decimal places, e.g., 32.16.) Target stock price What is the stock price today assuming a required return of 10 percent on this stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price

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