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ABC is a fast growing company that paid a dividend this year of $1, which is expected to grow at 20% for two years. Afterwards,
ABC is a fast growing company that paid a dividend this year of $1, which is expected to grow at 20% for two years. Afterwards, the growth rate will be 8%, which implies that the value of the stock at the end of the second year (i.e. P2) will be $77.76. If the required is 10%, what is the value of this stock today (i.e. P0)? [Hint: The price at the end of the second year, P2, is already calculated] A. $24.68 B. $33.82 C. $44.73 D. $66.55
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