If Walmart (WMT) recently earned a profit of $5.10 per share and has a P/E ratio of 16.25. The dividend has been growing at a 6 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 12 in five years? A.$110.91, $81.90 respectively B.$82.88, $61.20 respectively C.$414.38, $306.00 respectively D.$41.44, $30.60 respectively

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A: The DDM refers to the theory where the dividends paid by a company are used as indicators for the…

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A: The Dividend Discount Model (DDM) is a financial valuation approach used to estimate the intrinsic…

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A: Solution:Dividend Discount Model (DDM) is the equity model to determine the current share price.As…

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A: A=P(1+r/100)^nwhereA=future valueP=present valuer=rate of interestn=time period.

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A: Formulas:

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