What is the target stock price in ten years

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Question - Squid inc. paid a dividend of $5.00. The dividends will be constant per year for the next five years. After that the dividends are expected to grow at 20% per year over the next five years. In 10 years, the estimated payout ratio is 20% and the industry average of PE ratio is 30. What is the target stock price in ten years? What is the stock price today assuming a required return of 15% on this stock?

Reference no: EM133163227

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