ABC Corporation has been growing at a rate of 10% per year and is expected to continue
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ABC Corporation has been growing at a rate of 10% per year and is expected to continue doing so for the next five years. After that, the growth rate is expected to slow down to 5% per year indefinitely. The company is currently paying an annual dividend of $2 per share and is expected to maintain this dividend for the next five years. The required rate of return for investing in this stock is 12%. What is the current value of the stock?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
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