Estimate of mc donald current stock price

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McDonald's last year EPS was $7.88, and it is expected to grow at 4.5% for next 2 years and at 3% for the following 2 years. Year 4 dividend is expected to grow at 2% in perpetuity. Dividend payout ratio is expected to remain constant at 60%. If cost of equity is 6.5%, what is the best estimate of Mc Donald's current stock price?

Reference no: EM133076539

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