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Question 3. [5 points) ABC Inc., will pay no dividends over the next 13 years because the firm needs to retain its earnings for growth
Question 3. [5 points) ABC Inc., will pay no dividends over the next 13 years because the firm needs to retain its earnings for growth purposes. The company will pay an $8 per share dividend in 14 years and will increase the dividend by 4 percent per year thereafter. If the required return on this stock is 9 percent, what is the current (t=0) share price? Answer: Justify your
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