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1 the target share price five years from 30. PE and Terminal Stock Price In practice, a common way to value a share of stock

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Solution: a) Dividend in 5 years=DO*(1+g)^n 1.15*(1+0.1)^5 1.85209 3.08681 EPS in year 5=D5/(1-payout ratio) 1.85209/(1-0.4)

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