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ABC Corp is expected to pay a dividend of $ 2 next year. The dividend is expected to grow by 2 0 % the following

ABC Corp is expected to pay a dividend of $

2

next year. The dividend is expected to grow by

20 %

the following year, and by

5 %

each year after that. If the required return on this stock is

10 %,

what is the value of the stock today?

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