Fowler is expected to pay a dividend of $1.61 one year from today and $1.76 two years from today. The company has a dividend payout ratio of 40 percent and the PE ratio is 17.95 times. If the required return on the company's stock is 10.9 percent, what is the current stock price?

Answer rating: 100% (QA)

To calculate the current stock price using the dividend payout ratio and the PE ratio we can use th... View the full answer