ractice, 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 $1.24. The dividends are expected to grow at 19 percent over the next five years. In five years, the estimated payout ratio will be 35 percent and a benchmark PE will be 19 . The required return is 11 percent. What are the projected dividends for each of the next five years? Yr11.24(1.19)1=1.4756.Yr21.24(1.19)2=1.755964Yr31.24(1.19)3=2,08959716Yr41.24(1.19)4=2.48662062Yr51.24(1.35)= What is the EPS in five years? What is the target stock price in five years? What is the stock price today