Problem:
Walmart recently earned a profit of $3.13 per share and has a P/E of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years.
Requirement:
Question 1: What will be the profit per share in 5 years?
Question 2: What would be the stock price in five years if the P/E ratio remained as 14.22?
Question 3: What would the stock price be in five years if the P/E ratio declined to 10?
Note: Please show how you came up with the solution.