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ABC Company is expecting two years of 0.25 growth in its earnings before reverting to its long-run growth rate of 0. Its most recent earnings

ABC Company is expecting two years of 0.25 growth in its earnings before reverting to its long-run growth rate of 0. Its most recent earnings are 120. Assume that the cost of equity capital is 0.15 and ABC Company pays out 0.47 of its earnings in dividends, reinvesting the remaining part. What is the value of its stock?

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