Kellogg Co. (K) recently earned a profit of $2.52 per share and has a P/E ratio of

Question:

Kellogg Co. (K) recently earned a profit of $2.52 per share and has a P/E ratio of 13.5. The has been growing at a 5 percent rate over the past few years. If this growth rate continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio declined to 12 in five years?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...