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ABC Corp. is experiencing rapid growth. The company expects the dividends grow at 15% per year for the next 4 years before leveling off at

ABC Corp. is experiencing rapid growth. The company expects the dividends grow at 15% per year for the next 4 years before leveling off at 5% into perpetuity. The required return on the companys stock is 12%. If the dividend per share just paid is $2.5. 1. What is the estimated terminal value? 2. What is the estimated current share price using the dividend growth model?

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