Walmart (WMT) Recently Earned a Profit of $3

question 121

Multiple Choice

Walmart (WMT) recently earned a profit of $3.13 per share and has a P/E ratio of 14.22. The dividend has been growing at a 12.5 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio declined to 10 in five years?

• A) $6.08, $5.04 respectively
• B) $72.22, $50.40 respectively
• C) $80.20, $56.40 respectively
• D) $86.46, $60.80 respectively

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Definitions:

Functional Strategies

Specific, smaller-scale plans designed to achieve objectives within a company's individual departments or functions, such as marketing or finance.

Supply Chain Uncertainty

The unpredictability in the supply chain processes that can lead to risks and challenges in meeting demand.

Product Life Cycle

Refers to the sequence of stages a product goes through from introduction to growth, maturity, and decline.

Competitive Pressure

The force or influence that competitors exert on each other in a marketplace, driving innovation, quality improvements, and often leading to lower prices for consumers.