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Please male sure the answer is correct and explain how you got it, thanks! ...

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Finance

Please male sure the answer is correct and explain how you got it, thanks!
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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 20 percent over the next five years. In five years, the estimated payout ratio will be 40 percent and a benchmark. P E will be 20 . The required retum is 12 percent. a. What is the target stock price in five years? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16. Note: Do not round intermediate calculetions and round your onswer to 2 decimal places, e.9., 32.16. b. Whot is the stock price today

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