Question
ABC stock just paid dividend $1.83 (D 0 ) per share, and future dividends are expected to grow at a constant rate of 4.84% every
ABC stock just paid dividend $1.83 (D0) per share, and future dividends are expected to grow at a constant rate of 4.84% every year. The required return for the ABC stock is 15.16%. What is current market price of ABC stock? Please show work.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
