1, Use the growth rate of earnings per share and the current EPS to estimate the

Question

1, Use the growth rate of earnings per share and the current EPS to estimate the dividend payment in 5 years.

Given information in the question,

If the growth rate of EPS is -0.78% and the target price is 60.28 and the analytics recommendation is 4/18/4

Please help very confused! Thank you in advance.

TGTUS$ 59.55 -N59.53 /59-54N 45x277 n on 30 oct c Vol-6, 162, 174 060.18N H 60.20B L 59.305D Val 367.708M 97) Actions Earnings & Estimates Target Corp Periodicity Quar Source ) Earnings History I ERN Next Announcement Prior Announcement Avg/Implied 1 Day Move (C) 11/15/17 08/16/17 5.68% / 4.18% à Current Multiples I EE MULT » Trailing 12M P/E Forward 12M P/E Est. LTG (EPS) 12.06 13.40 -0.78% Analyst Coverage l ANR Buy/Hold/Sell Current Price Target Price 4/18/4 59.55 60.28 Consensus Overview I EEO D Current Perlod Overview (93/18) -20 prsor Period Analysts (q2/19) Q3/18 Est0.O0 4Wk Chg YoY Gr Growth vs Comps 11) EPS, Adj+ 12) EPS, GAAP 13) Revenue 14) Net Income, Adj+ 15) Operating Profit 16) 0.855, 0.855 16.546B 464.8OOM 823.875M 1.4218 Past Surprise Beat 6 of 8 Beat 5 of 8 Beat 6 of 8 Beat 5 of 8 0.00% 0.00% 0.00% 0.00% 0.00% -19,4% weaker 0.6% weaker 22.5% weaker EBITDA -12.7% weaker Beat 4 of 8 Earnings Trends EM 03 on sloyr ntenllonnes evewr , Earnings Estimates Graph I EEG aigs Estimates Graph I EtG Target Investments Ald Sales, Traffic Growth: Earnings outlook Post-2Q Earnings Outlook: Building Le sustainable traffic and same-store sales growth remains a top concern for Target, even as 2Q results underscore e that its efforts are starting to take hold. Investments to lower prices, improve service and balance sales 300) Edit Pane1 301) Expand Panel 580 NIL 20:33 3F Apex Research : Daily Highlights 31 October 2017 579 NYT 20:35 Rest for the Weary.as Battered World Series Pitchers Get a Day of 578 FTI 20:34 FastFT: Nintendo jumps 5% after raising profit, sales frecasts h e o ch: Pay attention to the metrics that matter FTW

Explanation / Answer

Current EPS, EPS0 = 0.855

EPS in year 5 = EPS0 x (1 + g)^n = 0.855 x (1 - 0.78%)^5 = $0.822

Dividend in year 5 = EPS5 x Payout ratio = 0.822 x 50.9% = $0.418

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