Question
ABC Inc. just paid a dividend of D 0 = $3.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in
ABC Inc. just paid a dividend of D0 = $3.75. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this stock is 9.00%. What is the best estimate of the stocks current market value? Do not round intermediate calculations.
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Governing Global Finance
Authors: Michele Fratianni, Paolo Savona
1st Edition
1138742147, 978-1138742147
