Ewald Companys current stock price is $36, and its last dividend was $2.40. In view of Ewalds

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Ewald Company’s current stock price is $36, and its last dividend was $2.40. In view of Ewald’s strong financial position and its consequent low risk, its required rate of return is only 12%. If dividends are expected to grow at a constant rate, g, in the future, and if rs is expected to remain at 12%, what is Ewald’s expected stock price 5 years from now?

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Financial Management Theory & Practice

ISBN: 9780324652178

12th Edition

Authors: Eugene BrighamMichael Ehrhardt

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