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- ABC Corp.'s last dividend of $5 has just been paid out (D0 = $5). The dividend is expected to grow at a constant rate
- ABC Corp.'s last dividend of $5 has just been paid out (D0 = $5). The dividend is expected to grow at a constant rate of 8% forever. The required return on ABC's shares is 13.4%. What is ABC's share price today, based on the constant growth model? (in $, rounded to the nearest $)
- A normal project has the following cash flows: CF(0) = -$5,000, CF(1) to CF(4) = +$2,000 each year, 1-4. If the discount rate is 15%, what is the project's profitability index, PI? [2 decimal places]
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