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ABC Corp. is expected to pay a dividend this year (at the end of the year) of $6. The dividend is then expected to grow
ABC Corp. is expected to pay a dividend this year (at the end of the year) of $6. The dividend is then expected to grow at a rate of 9.5% per year forever. Based on the Gordon Growth Model, what is the estimate of ABC Corp's stock price? The required return on ABC Corp's equity (the expected return for investing in something else with similar risk) is 11.1%. (Answer in dollars, but without the dollar sign)
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