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ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the
ABC is expected to pay a dividend of $1.25 every six months for the next four years. The current share price is $25.76 and the relevant discount rate is 14% (compounded semi-annually). What do you expect the share price at the end of year 4 to be?
a. $28.82
b. $26.74
c. $31.44
d. $25.12
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