The dividend payout ratio is also expected to remain at 30


A compay is expected to have earnings of $1.52 per share in one year, $1.81 per share in two years, and $2.45 per share in three years. The dividend payout ratio is also expected to remain at 30% over the next three years. The leading P/E ratio is expected to increase up to 20 in two years. If the required rate of return is 10%, what is a fair value for this stock today?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The dividend payout ratio is also expected to remain at 30
Reference No:- TGS02280782

Expected delivery within 24 Hours