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Company ABC is expected to pay a dividend of $9.36 a year from now. This dividend is expected to grow at 17.28% for the next
Company ABC is expected to pay a dividend of $9.36 a year from now. This dividend is expected to grow at 17.28% for the next two years and at 11.86% forever after. The return that investors expect on ABC is 18.94%.
(a) Determine ABCs stock price today.
(b) What is the expected price of ABC's stock one year from now?
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