Question: Solve dividends EPS and stock prices using the information that follows. Bravo Company just paid a dividend of $1.27. A growth rate for dividends is

Solve dividends EPS and stock prices using the information that follows. Bravo Company just paid a dividend of $1.27. A growth rate for dividends is expected to be 12% over the next five years. The benchmark PE for this industry is 22. Bravo Company has a payout ratio of 30%. The required return is 14%.

What are the projected dividends for each of the next five years?

(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 12.34.)

What is the EPS in five years?

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.)

What is the target stock price in five years?

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.)

What is the stock price today?

(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.)

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