Question
Mobile App Mania just paid a dividend of $1.24. The dividends are expected to grow at 19% over the next five years. The company has
Mobile App Mania just paid a dividend of $1.24. The dividends are expected to grow at 19% over the next five years. The company has a payout ratio of 35% and a benchmark PE of 22. The required return is 11%.
What are projected dividends in each of the next 5 years?
What is the EPS in year 5?
What is the target stock price in year 5?
What is the stock price today?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
