If this growth rate continues what would be the stock price


Kellogg Co. (K) recently earned a profit of $4.02 earnings per share and has a P/E ratio of 20.25. The dividend has been growing at a 4 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 15 in five years?

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Financial Management: If this growth rate continues what would be the stock price
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