Question
ABC Corporation just paid a $2.08 dividend and is expected to grow at the following rates - year 1 at 6%, year 2 at 8%,
ABC Corporation just paid a $2.08 dividend and is expected to grow at the following rates - year 1 at 6%, year 2 at 8%, year 3 at 10%, year 4 at 12 % , year 5 at 8% and thereafter at 3%,The cost of equity using the capital asset pricing model is 8%. What is the value for ABC Corporation using the dividend discounting model?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
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