The current price is represented by the dividends forcast

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Ewert Enterprises' stock currently sells for $30.50 per share. The stock’s dividend is projected to increase at a constant rate of 4.50% per year. The required rate of return on the stock, rs, is 10.00%. What is Ewert's expected price 3 years from today?

Refering to the above information what percentage of the current price is represented by the dividends forcast to be paid after year 4? That is, include the dividends paid in year 5 and beyond to calculate an answer. Is the current price more reflective of dividends paid in the short or long term.

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Reference no: EM131967597

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