Question: Settings The next dividend for ABC Corp. is expected to be $1.34. It will rise to $2.35 the next year and grow at a constant

Settings

The next dividend for ABC Corp. is expected to be

$1.34.

It will rise to

$2.35

the next year and grow at a constant

6.3%

from then on. The required return is

12.5%.

What is the current price of the stock?

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