XYZ, Inc. is a publicly-traded firm that recently announced EPS of $1.25 on Net Income of $4,068,750. The company also paid dividends which amounted to 22% of it's earnings. It expects its earnings to continue to grow at a rate of 5% for the next 5 years, but is uncertian of its growth prospects thereafter. Its dividends are expectd to dtay the same for th next 3 years, but the company expects to increase dividends by $0.15 into the fourth year. That dividend is expecte to stay constant thereafter.

XYZ benchmarks itself against two competitors. The first competitor is much bigger and has been in business much longer. Its investor expects an 8.55% return. The second is approximately the same size XYZ and it competes vigorously against XYZ on a price basis for market share. Its investors expect annual returns of 10.80%. The consensus opinion from equity analysts is the priceof a share of XYZ is likely t be $48.50 at the end of fifth year.

A. How many shares of XYZ stock are currently outstanding?

B. Project Net Income for each of the next years 5 years.

C. Project EPS for each of the next 5 years.

D. Project Payout Ratio for each f the next 5 years.

E. How much should a share of XYZ stock sell for today?