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Next Quarter, Alpha Beta Corp. (ABC) will pay a $1.50 dividend. Future dividends are expected to grow at the constant rate of 2% perQuarter. If
Next Quarter, Alpha Beta Corp. (ABC) will pay a $1.50 dividend. Future dividends are expected to grow at the constant rate of 2% perQuarter. If the effective quarterly rate is 2.5% what is the current stock price of ABC?
(A) $38.25
(B) $37.50
(C) $30.00
(D) $25.50
(E) None of the above.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
