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4. Company ABC has just made a dividend payment of $4,000,000 to its common shareholders, and the number of common stocks outstanding is 1 million.

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4. Company ABC has just made a dividend payment of $4,000,000 to its common shareholders, and the number of common stocks outstanding is 1 million. The required rate of return on this stock is 4% per year, and dividend payment is made once per year. (12pts) (1) Analyst A thinks that the amount of dividend will grow annually at 4% for the next 4 years and then remains at that level thereafter forever. What should be the stock price according to Analyst A's scenario? (6pts) (2) Analyst B thinks that the amount of dividend remains at the current level for the next 4 years, but the dividend amount will grow annually at 2% every year afterward. What should be the stock price according to Analyst B's scenario? (6pts)

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