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ABC Inc. has not paid a dividend during the past 25 years. However, at the end of this year, the company plans to pay a
- ABC Inc. has not paid a dividend during the past 25 years. However, at the end of this year, the company plans to pay a $1.50 dividend and a $2.50 dividend the following year (Year 2). Starting in three years, the dividend will begin to grow by 4 percent each year for as long as the firm is in business. If investors require a 12 percent rate of return to purchase this common stock, what should be the market value of the stock today?
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