Question: ABC Ltd currently does not pay a dividend to its shareholders but analysts expect that it will start paying a $2.00 dividend in 3 years.

ABC Ltd currently does not pay a dividend to its shareholders but analysts expect that it will start paying a $2.00 dividend in 3 years. They expect this dividend to grow at an annual rate of 6% p.a. If the required rate of return on ABC's shares is 12% p.a. its share price today should be:

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