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ABCD Corp. is a tech company with the industry required rate of return of 11.7%. If ABCD currently pays $3.30 in dividends and the dividend
ABCD Corp. is a tech company with the industry required rate of return of 11.7%. If ABCD currently pays $3.30 in dividends and the dividend will have the growth rate of 3.1%, what will be the value of ABCD Corps stock under the Dividend Discount Model five years from now? Assume ABCD Corp. has paid this year's dividend already. $31.14 O $38.37 O $32.24 O $29.42 Question 14 1 pts How would your answer to Question 13 change if ABCD Corp. hasn't paid this year's dividend yet? O $31.14 O $38.37 O $41.67 $42.56 Question 15 1 pts AB Company will pay the dividend of $2.35 one year from now, $2.64 two years from now, and $4.12 three years from now. Afterwards, the dividend will grow by 4.3% each year. If the required rate of return for AB Company's industry is 11.2%, what is the present value of AB Company's stock under the Dividend Discount Model? O $49.54 $51.24 O $50.21 $52.54
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