ABC is a new company and won't be paying dividend for the next five years. In year 6 it will pay a $3 dividend, then a $5 dividend and a $7 dividend year 8. Afterwards dividend will slow to 2% growth. Investors want a 10% return. What is stock price now?

Answer rating: 100% (QA)

Heres how to calculate the stock price of ABC considering the future dividend stream and the require... View the full answer