Solution-P-e ratio model and future price

P-e ratio model and future price

Reference no: EM132234886

P/E Ratio Model and Future Price

Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years?

a. What will be the profit per share in 5 years?

b. What would be the stock price in five years if the P/E ratio remained as 14.22?

c. What would the stock price in five years if the P/E ratio declined to 10?

Reference no: EM132234886

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P-e ratio model and future price

Reference no: EM132234886

Reference no: EM132234886

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