Dividends are expected to grow at constant rate in future

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

Reference no: EM131188215

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