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 $1.19. the dividends are expected to grow at 14 percent over the next five years. in five years, the estimated payout ratio is 30 percent and the benchmark pe ratio is 21. after five years, the earnings are expected to grow at 7 percent per year. the required return is 14 percent. required: what are the projected dividends for each of the next five years? (do not round intermediate calculations. round your answer to 2 decimal places (e. g.,32.

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.