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Suppose a company just paid a dividend of $2.01 per share. The dividends are expected to grow at 20% over the next five years. In
Suppose a company just paid a dividend of $2.01 per share. The dividends are expected to grow at 20% over the next five years. In five years, the estimated payout ratio is 20% and the benchmark PE ratio is 30. Do not write units. Round your answer to the nearest ones. A. What is the amount of dividend after five years? B. What is the target stock price at year 5 (price as of year 5, not present value)? C. What is the target stock price today assuming a required rate of return of 10% on this stock
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