Company is expected to have earnings

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A company is expected to have earnings of $1.39 per share in one year, $1.75 per share in two years, and $2.26 per share in three years. The dividend payout ratio is also expected to remain at 30% over the next three years. The leading P/E ratio is expected to increase up to 20 in two years. If the required rate of return is 10%, what is a fair value for this stock today?

Reference no: EM131553395

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