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question #3 (Round intermediate calculations to 4 decimal places. Round the final answers to 2 decimal places. Only put numbers in the boxes. DO NOT

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question #3 (Round intermediate calculations to 4 decimal places. Round the final answers to 2 decimal places. Only put numbers in the boxes. DO NOT include units, $.x%, etc in your answers.) 3. ABC Inc is a new startup company and recently went public. When pricing its stock, analysts expect that the company will not pay any dividend in the first 7 years. The company is expected to pay a dividend of $ 2.5 in Year 8 and the dividend is expected to grow at 17% per year for the next 4 years before leveling off at 2% into perpetulty. The discount rate of the company is 9% According to the above information, what is the stock price in 12 years? The stock price in 12 years is: $ According to the above information, what is the current stock price? The current stock price is: $

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