Question: The next dividend for Polycorp will be $0.5 per share (D 1 ). Investors require a 13 % return on companies such as ABC Limited.

The next dividend for Polycorp will be $0.5 per share (D1). Investors require a 13 % return on companies such as ABC Limited. ABC's dividend increases by 3 % every year. Based on the dividend growth model what is the value of ABC Limited shares today?

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