1. Stretch Corp, a home gym company, is currently paying a dividend of $5.00 per share. The companys earnings are currently $5.00 per share and are not expected to grow much over the next few years. Stretch Corp is facing extreme competition and their debt has been piling up as they spend to remain competitive. The stock is currently trading at $125. Using what you know about a healthy pay-out ratio, what is a realistic price target for the stock using a future 4% growth rate and a 4% discount rate. *hint-is the dividend sustainable at the current level? a realistic doesn't have to be exact