Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN: 9780134492513
Author: Kotler, Philip, Armstrong, Gary (gary M.)
Publisher: Pearson Higher Education,
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Problem 5
Intro
A stock just paid an annual dividend of $5.1. The dividend is expected to grow by 2% per year
for the next 4 years. In 4 years, the P/E ratio is expected to be 24 and the payout ratio to be
60%.
The required rate of return is 8%.
Part 1
What is the intrinsic value of the stock?
0+ decimals
Submit
BAttempt 1/10 for 1.5 pts.
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Transcribed Image Text:Problem 5 Intro A stock just paid an annual dividend of $5.1. The dividend is expected to grow by 2% per year for the next 4 years. In 4 years, the P/E ratio is expected to be 24 and the payout ratio to be 60%. The required rate of return is 8%. Part 1 What is the intrinsic value of the stock? 0+ decimals Submit BAttempt 1/10 for 1.5 pts.
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