Waldo Companys current stock price is $36, and its last dividend was $2.40. IN view of Waldos

Question:

Waldo Company’s current stock price is $36, and its last was $2.40. IN view of Waldo’s strong financial position and its consequent low risk, its required rate of return is only 12%. If dividends are expected to grow at a constant rate of g in the future, and if rs is expected to remain at 12%, then what is Waldo’s expected stock price 5 years from now?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...