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ABC Incorporated is a computer firm specializing in P.C.s that have 9 billion K in random access memory. This is a new firm that will
ABC Incorporated is a computer firm specializing in P.C.s that have 9 billion K in random access memory. This is a new firm that will pay no dividend next year, a $0.75 dividend in year 2, and a $1.00 dividend in year 3. The latter will then grow at 8% every year. If the discount rate for the stock is 15%, what is the fair value of the stock?
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