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Question 11 (10 points) Saved ABC, Inc has a current dividend of $1.00 and a required rate of return of 12%. A dividend growth rate
Question 11 (10 points) Saved ABC, Inc has a current dividend of $1.00 and a required rate of return of 12%. A dividend growth rate of 15% is projected for the next 2 years, followed by a 10% growth rate for the next 4 years before settling down to a constant 4% growth rate thereafter. What is the expected stock price of ABC in year 4? 1) $14.19 2) $17.51 3) $20.64 4) $23.18
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