New York Times Co. (NYT) recently earned a profit of $1.31 per share and has a P/E ratio of 19.25. The dividend has been growing at a 6.50 percent rate over the past six years.

Question

New York Times Co. (NYT) recently earned a profit of $1.31 per share and has a P/E ratio of 19.25. The dividend has been growing at a 6.50 percent rate over the past six years.
 If this growth rate continues, what would be the stock price in four years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 23 in four years? (Round your answers to 2 decimal places.)
  Stock price	$   
  Stock price with new P/E	$

Ms. Sue · Answer

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