Dividend payout ratio is expected to remain constant

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McDonald s last Eps was 5.55 and it is expected to grow at 2% for the next 2 years and 1.5 % for the next 2 years. year 4 dividend is expected to grow at a 1% in perpetuity. dividend payout ratio is expected to remain constant at 60%.if cost of equity is 4.1 , what I is the best estimate of McDonald stock price?

Reference no: EM131021527

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