Analysts expect MC, Co. to maintain a dividend payout ratio of 35% and enjoy an expected growth rate of 12% per year for the next 5 years. After the fifth year, all earnings will be paid out as dividends. The required rate of return on MC, Co equity is 8%. Given that the last dividend paid was $0.5, at what price would the analysts currently value the stock under their own expectations?

Answer rating: 100% (QA)

Dividend per share Earnings per shareDividend Payou... View the full answer