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Assume that ABC Ltd. just paid a dividend of $4 per share. It is estimated that dividends will grow at a rate of 8% p.a.

Assume that ABC Ltd. just paid a dividend of $4 per share. It is estimated that dividends will grow at a rate of 8% p.a. for the next three years, after which the growth will stabilize to a rate of 5% p.a. If investors require a 12% p.a. return on their investment, what is the current price of ABCs stock?

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