Problemwalmart recently earned a profit of 313 per share, Ask an Expert

Accounting

Problem:

Walmart recently earned a profit of $3.13 per share and has a P/E of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years.

Requirement:

Question 1: What will be the profit per share in 5 years?

Question 2: What would be the stock price in five years if the P/E ratio remained as 14.22?

Question 3: What would the stock price be in five years if the P/E ratio declined to 10?

Note: Please show how you came up with the solution.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91168286

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