In 2 months ABC stock is going to pay dividend of $1.25. Dividends are paid each quarter.

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In 2 months ABC stock is going to pay dividend of $1.25. Dividends are paid each quarter. During the 3 years after the next dividend payment, ABC is expected to increase its dividends by 1.5% per quarter. Then, its dividends are expected to grow by 1.25% per quarter. The relevant discount rate given ABC's risk is 15% per year. What is the current price of the stock?

Posted Date: May 11, 2024 02:19 AM

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In 2 months ABC stock is going to pay dividend of $1.25. Dividends are paid each quarter.

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