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P/E Ratio Model and Future Price Walmart (WMT)recently Earned a Profit

Question 83

Multiple Choice

P/E Ratio Model and Future Price Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22.The dividend has been growing at a 12.5 percent rate over the past few years.If this growth 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 10 in five years?


A) $6.08, $5.04 respectively
B) $72.22, $50.40 respectively
C) $80.20, $56.40 respectively
D) $86.46, $60.80 respectively

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