Question
1. ABC Co's stock will pay a cash dividend of $3.50 next year. After that, the dividends are expected to increase indefinitely at 4% per
1. ABC Co's stock will pay a cash dividend of $3.50 next year. After that, the dividends are expected to increase indefinitely at 4% per year. If the Company's discount rate is 12%, what should the stock price be? (round to nearest cent - 2 decimals)
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
