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3. ABC Inc is a new startup company and recently went public. When pricing its stock, analysts expect that the company will not pay any
3. ABC Inc is a new startup company and recently went public. When pricing its stock, analysts expect that the company will not pay any dividend in the first 6 years. The company is expected to pay a dividend of $ 2 in Year 7 and the dividend is expected to grow at 13% per year for the next 5 years before levelling off at 4% into perpetuity. The discount rate of the company is 6% According to the above information, what is the stock price in 12 years? The stock price in 12 years is: $ According to the above information, what is the current stock price? The current stock price is: $
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