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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?

a. $31.61
b. $32.43
c. $33.26
d. $34.11
e. $34.81

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Solution Summary

The solution explains how to calculate the expected price of a stock in 3 years

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