Problem 830 In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next ve years or so, then nd the "terminal" stock price using a benchmark PIE ratio. Suppose a company just paid a dividend of $1.36. The dividends are expected to grow at 16 percent over the next ve years. In ve years. The estimated payout ratio is 40 percent and the benchmark P/E ratio is 21. What is the target stock price in ve years? What is the stock price today assuming a required return of 11 percent on this stock