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What would be the stock price in six years

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Reference no: EM132753348

Problem - P/E Ratio Model and Future Price

New York Times Co. (NYT) recently earned a profit of $1.71 per share and has a P/E ratio of 19.45. The dividend has been growing at a points 6.25 percent rate over the past six years.

If this growth rate continues, what would be the stock price in six years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 22 in six years?

Reference no: EM132753348

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