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Problem:

Kellog Co. recently earned a profit of 2.72 earnings per share and has a P/E ratio of 19.60. The dividend has been growing at a 5 percent rate over the past few years.

Required:

Question: If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio declined to 12 in four years?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147999

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