Question: Suppose ABC Inc. does not currently pay a dividend, but expects to begin paying a $5 dividend in 5 years and that dividends will grow

Suppose ABC Inc. does not currently pay a dividend, but expects to begin paying a $5 dividend in 5 years and that dividends will grow by 7% every year thereafter. If your required return on Sarah's Software stock is 16%, what would you be willing to pay for the stock? (10 points)

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