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Wonderland Inc. has just paid a dividend of $2.75 per share. The company has been following a highly stable dividend growth policy (practica
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Wonderland Inc. has just paid a dividend of $2.75 per share. The company has been following a highly stable dividend growth policy (practica
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Question 1201747: Please help me solve this question:
Wonderland Inc. has just paid a dividend of $2.75 per share. The company has been following a highly stable dividend growth policy (practically at a constant rate) for many years and is expected to do so in the foreseeable future. What will be the price of Wonderland's stock five vears from now if the market expects the company to pay a $2.86 dividend for next year and its equity cost of capital to be 11.7%? Answer by ikleyn(52839) (Show Source):