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Company ABC suspended its dividend payments to meet its cash reserve needs. You expect the company to resume paying annual dividends at the end of

Company ABC suspended its dividend payments to meet its cash reserve needs. You expect the company to resume paying

annual dividends at the end of year

7.

The dividend paid in year

7

will be

$2.02

per share, and it is expected to grow at a rate of

5%

per year. If the company's equity cost of capital is

13%,

estimate the value of ABC's share today.

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