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ABC Inc. currently pays a $1 annual dividend. Investors believe that dividends will grow at 15% next year, 10% annually for the two years after
ABC Inc. currently pays a $1 annual dividend. Investors believe that dividends will grow at 15% next year, 10% annually for the two years after that, and 5% annually thereafter. Assume the required return is 11.5%. What is the current market price of the stock?
A) $17.95
B) $19.27
C) $21.08
D) $22.47
E) $24.31
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