Question 25 5 pts ABC Company plans to pay its first dividend of $0.46 1 year from today (=Year 1), then to increase it at a relatively rapid rate in Year 2. and then to increase it at a constant rate of 6% thereafter. The company requires 14% for stockholders' annual returns. Year 0 1 I 2 3 N/A N/A 50% 6% Growth rate Dividends $0.00 $0.46 ? ? What is your estimate of the stock's current value? Round your answer to two decimal places of dollar, but do not enter $ in your answer, e.g.. xx.xx. (Hint: Make sure to measure and include the PV of P2 using the CDG model.) - Previous Next