Question
Problem 7 A stock just paid an annual dividend of $5.3. The dividend is expected to grow by 4% per year for the next 4
Problem 7
A stock just paid an annual dividend of $5.3. The dividend is expected to grow by 4% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 21 and the payout ratio to be 60%.
The required rate of return is 8%.
Part 1
What should be the current stock price?
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Financial Accounting The Impact On Decision Makers
Authors: Gary A Porter, Curtis L Norton
8th Edition
1111534861, 9781111534868
