In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the "terminal" stock price using a benchmark pe ratio. suppose a company just paid a dividend of $1.25. the dividends are expected to grow at 11 percent over the next five years. in five years, the estimated payout ratio is 30 percent and the benchmark pe ratio is 23. after five years, the earnings are expected to grow at 7 percent per year. the required return is 12 percent. what are the projected dividends for each of the next five years?

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer