Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another two years and then fall to 3% p.a., where it is expected to remain indefinitely. Given that the required return on ABC's shares is 13% and that the last dividend of $2 has just been paid, what is the price of ABC's shares today?

Answer rating: 100% (QA)

To calculate the price of ABCs shares today we can use the dividend ... View the full answer