Strong financial position and consequent low risk

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Reference no: EM131972500

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 percent. if dividends are expected to grow at a constant rate, g, in the future, and if rs is expected to remain at 12 percent, what is is Ewald's expected stock price 5 years from now?

Reference no: EM131972500

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