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ABC produces ham and bacon and is expected to earn $ 6 per share next year and pay out $ 1 . 2 0 in
ABC produces ham and bacon and is expected to earn $ per share next year and pay out $ in dividends. They project dividend growth for the next three years. Then, dividends will double as they reduce their reinvestment rate. Thereafter, they expect growth of Investors require an return to invest in ABC stock.
Part a: Construct time line of ABC dividends that lasts at least years.
Part b: What is the continuing value as of year
Part c: If markets are efficient, what is the price of ABC shares today?
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