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ABC Co. presently does not pay a dividend, but is expected to pay a dividend in year 3 of $.75 and the dividend then will
ABC Co. presently does not pay a dividend, but is expected to pay a dividend in year 3 of $.75 and the dividend then will increase at a constant rate of 5% annually. The rate of return is 10%. What is an estimate of the price of the stock today?
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