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ABC Airways common stock just paid a dividend of $2.50 . Dividends are expected to grow at a rate of 8% indefinitely. If investors require

ABC Airways common stock just paid a dividend of

$2.50

. Dividends are expected to grow at a rate of

8%

indefinitely. If investors require a rate of return on the stock of

15%

, what should be the value of ABC Airway's common stock today?\

$41.46

\

$35.71

\

$38.57

\

$42.44
image text in transcribed
ABC Airways common stock just paid a dividend of $2.50. Dividends are expected to grow at a rate of 8% indefinitely. If investors require a rate of return on the stock of 15%, what should be the value of ABC Airway's common stock today? $41.46 $35.71 $38.57 $42.44

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