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QUESTION 1.(25 Pts) ABC, Inc., just paid a dividend of $2.73 on its stock. The growth rate in dividends is expected to be a
QUESTION 1.(25 Pts) ABC, Inc., just paid a dividend of $2.73 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 15 percent on the stock for the first three years, a return of 13 percent for the next three years, and then a return of 10 percent thereafter. What is the current share price for the stock?
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