Question
a)Ewald Company's current stock price is $50, and its last dividend was $5.50. In view of Ewald's strong financial position and its consequent low risk,
a)Ewald Company's current stock price is $50, and its last dividend was $5.50. 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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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
