The ABX News Co. paid the last dividend (D₀) of $2/share, and the dividend is expected to grow at a rate of 12% over the next 4 years. It will then grow at a normal, constant rate of 3% for the future. The rate of return is 11%. What should the stock price be today?

Answer rating: 100% (QA)

To calculate the stock price using the dividend discount model DDM we need to consider the fu... View the full answer