Ewald Companys current stock price is $36, and its last dividend was $2.40. In view of Ewalds
Question:
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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To calculate Ewalds expected stock price 5 years from now we can use the Gordon Growth Model GGM als...View the full answer
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Related Book For
Financial Management Theory & Practice
ISBN: 9780324652178
12th Edition
Authors: Eugene BrighamMichael Ehrhardt
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