What is the stock price today

Assignment Help Financial Management

Reference no: EM132010581

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1.33. The dividends are expected to grow at 18 percent over the next five years. The company has a payout ratio of 40 percent and a benchmark PE of 21. The required return is 12 percent.

What is the target stock price in five years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Target price in 5 years $

What is the stock price today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price today $

Reference no: EM132010581

Questions Cloud

Preliminary project estimates-what is the npv of the project : Based on these preliminary project estimates, what is the NPV of the project? What is the IRR?

New york city practice price discrimination : How does a typical movie theater in New York City practice price discrimination? What strategies do they have for pricing different customers' willingness.

Promote long-run economic growth : What should the federal government do to promote long-run economic growth?

Production possibilities frontier : Which of the following production combinations is also on the production possibilities frontier?

What is the stock price today : What is the target stock price in five years? What is the stock price today?

Discuss about the market segmentation : As discussed in the Unit I Lesson, the marketing concept consists of elements that concern market segmentation and how it relates to target markets.

Depth and long duration of the great depression : Countries often resort to imposing barriers to trade during difficult economic times. Recall the Great Depression, which began in 1929

What is the mean and standard deviation of the scores : (i) What is the mean and standard deviation of the scores on the final examination for ECO 3150 students?

How the campaign leveraged influencers as a tactic : Target: Identify the target audience for each selected campaign, supporting your response with specific examples or data.

User Account

All Pages