ABC, Inc. has a P/E ratio of 12 and maintains a dividend payout rate of 40%. The stock price of ABC, Inc. on January 1 is $32. What would the value of the stock be if the dividend payout ratio was 60%? (Please use Excel)© BrainMass Inc. brainmass.com June 23, 2018, 1:52 pm ad1c9bdddf
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Stock Price $32
The solution examines the value of the stock with a dividend payout ratio of 60%.