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Consider the stock of ABC Inc., a growth stock that will increase its dividend by 20 percent for the next two years and then maintain

Consider the stock of ABC Inc., a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate, thereafter. The stock has a required rate of return of 17% and the most recent dividend (D0) of $2.49 per share. a. (2 points) Draw a timeline for the cash flows for this stock b. (8 points) What is the value (price) of the stock today (i.e. P0)?

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