(ST1) Constant Growth Stock Valuation Ewald Companys current stock price is $36, and its last dividend was...
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(ST–1)
Constant Growth Stock Valuation 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%, then what is Ewald’s expected stock price 5 years from now?
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Related Book For 
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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