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Please answer the following questions in Excel: -Suppose a company just paid a dividend of $1.51, and these dividends are expected to grow at 25%
Please answer the following questions in Excel:
-Suppose a company just paid a dividend of $1.51, and these dividends are expected to grow at 25% over the next five years. In five years, the payout ratio (as a fraction of earnings) is estimated be 40%, and the benchmark PE multiple for comparable firms (similarly-sized firms in this industry) is estimated to be 17. What is the price of the stock today if the required rate of return is 11%?
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