Question
ABC Corporation will pay a dividend of $0.83 next year. The dividend is then expected to grow at 8% in 2023 and 5% in 2024,
ABC Corporation will pay a dividend of $0.83 next year. The dividend is then expected to grow at 8% in 2023 and 5% in 2024, and then maintain a constant growth rate of 2%. If the expected cost of capital is 7% what is the present value of the stock? a. $14.56 b. $14.35 c. $18.00 d. $16.20
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Personal Finance
Authors: Jeff Madura
4th Edition
0136117007, 9780136117001
