Shares of the WNZ corporation have just paid a yearly dividend of $1.76 per share. This meant that the company was able to maintain its steady dividend growth path of 4% per year, and investors expect that the dividends will continue to grow at this rate in the foreseeable future. They require a return of 20% per year from this stock. What do you expect the share price to be three years from now?

 

(Round your answer to the nearest $)

Answer rating: 100% (QA)

To calculate the expected share price three years from now we can use the dividend discount model DD... View the full answer