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ABC Corp for pays an initial dividend of $2 per share which rises by 5% a year. The equity cost of capital for ABCamounts to
ABC Corp for pays an initial dividend of $2 per share which rises by 5% a year. The equity cost of capital for ABCamounts to 10%. On the basis of this information, ABC stock should be trading at:
a. | $20 | |
b. | $50 | |
c. | $100 | |
d. | $40 |
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