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ABC Inc. paid an annual dividend of $1.78 a share last month. The company is planning on paying $1.92, $2.21, and $1.63 a share over
- ABC Inc. paid an annual dividend of $1.78 a share last month. The company is planning on paying $1.92, $2.21, and $1.63 a share over the next 3 years, respectively. After that, the dividend will be constant at $3 per share per year. What is the intrinsic value of this stock today if the market rate of return is 10 percent?
| a. | $17.51 | |
| b. | $21.68 | |
| c. | $27.36 | |
| d. | $44.33 | |
| e. | $36.94 |
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Finance
Authors: Ehsan Nikbakht, A A Groppelli
6th Edition
0764147595, 9780764147593
