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The ABC Value Company paid a dividend last week of $2/share. Their dividend for next year is expected to be 100% higher, and 50% higher
The ABC Value Company paid a dividend last week of $2/share. Their dividend for next year is expected to be 100% higher, and 50% higher for the following year. In the third year and each year thereafter, the dividend is expected to grow by 6%. If your client has a required rate of return of 10%, what is the most that they would pay to own ABC Value Co?
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