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Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another two years and then
Assume that ABC Ltd has a current growth rate of 10% p.a. that is expected to be maintained for only another two years and then fall to 3% p.a., where it is expected to remain indefinitely. Given that the required return on ABC's shares is 13% and that the last dividend of $2 has just been paid, what is the price of ABC's shares today?
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To calculate the price of ABCs shares today we can use the dividend ...
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Cost Benefit Analysis Concepts and Practice
Authors: Anthony Boardman, David Greenberg, Aidan Vining, David Weimer
4th edition
137002696, 978-1108448284, 1108448283, 978-0137002696
