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please help Company ABC is a Canadian company in the consumer staples sector with a required rate of return of 7.35%. If the incumbent Canadian
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Company ABC is a Canadian company in the consumer staples sector with a required rate of return of 7.35%. If the incumbent Canadian prime minister's party retains its power, the company's current annual dividend of C$0.65 per share will grow 12% a year for the next four years and then stabilize at a 3.5% growth rate a year indefinitely. If a new government takes office in Canada, however, then ABC will likely not experience the elevated 12% short-run growth because of new regulatory and tax changes, and instead it will grow by 3.5% indefinitely. Assuming a new government takes office in Canada, the intrinsic value of Company ABC stock would be closest to: C\$9.15 C\$14.28 C $16.88 C\$17.47 c$22.74 Step by Step Solution
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