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Compute the value of a share of common stock of ABC Company whose most recent dividend was $ 2 . 5 0 and is expected

Compute the value of a share of common stock of ABC Company whose most recent dividend was $2.50 and is expected to grow at three percent per year for the next five years, after which the dividend growth rate will increase to 6 percent per year indefinitely. Assume 10 percent required rate of return.

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