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6 . ABC s common stock pays $ 1 . 4 0 in dividends today. The dividend is expected to grow at a 2 5

6. ABCs common stock pays $1.40 in dividends today. The dividend is expected to grow at a 25% annual rate for the next 4 years. After four years, the growth rate is expected to go down to 6% annual rate for a long, long time. FOR YOUR CONVENIENCE, BELOW I HAVE COMPUTED CASH FLOWS FROM THIS STOCK. If the RRR from this stock is 16%, whats this MAXIMUM YOU WILL PAY FOR THIS STOCK?

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