SOLUTION: 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
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-> SOLUTION: 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
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Question 1201759: 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 years 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(52807) (Show Source):