Question
a. ABC, Inc. pays a dividend of $3.74 per year infinitely. If the required rate of return on ABC's stock is 4.92% per year, what
a. ABC, Inc. pays a dividend of $3.74 per year infinitely. If the required rate of return on ABC's stock is 4.92% per year, what is today's price of the stock?
b. ABC, Inc. is expected to pay a dividend of $7.99 next year. The dividends are expected to grow at 8.24% each year forever. The required rate of return on the stock is 19.26%. What is today's price of the stock?
c. ABC, Inc. just paid dividend of $4.63. The dividends are expected to grow at 6% each year forever. The required rate of return on the stock is 23.95%. What is today's price of the stock?
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