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ABC Corp's return on equity (ROE) is 20%. The company pays out 70% of its net income as dividends. The last dividend, just paid, was
ABC Corp's return on equity (ROE) is 20%. The company pays out 70% of its net income as dividends. The last dividend, just paid, was $2.00. If dividends are expected to grow by the company's internal growth rate indefinitely what is the current value of ABC's common stock if its required return is 18%? [5 points)
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