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Question- ABC Corporation paid $ 2.15 dividend last year. The dividend is expected to grow at a rate of 3.5% for the coming 3 years
Question- ABC Corporation paid $ 2.15 dividend last year. The dividend is expected to grow at a rate of 3.5% for the coming 3 years and 3% thereafter and forever. The required rate of return is 7.5%. [6 marks] Required: A-Calculate ABC stock price today. B-Would you like to buy ABC stock if the market price is BD 40, and why? (4 marks) (2 marks)
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