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The expected dividends from ABCs stock are $4 this year, $5 for year 2, $6 for year 3, and $7 for year 4. After the
The expected dividends from ABCs stock are $4 this year, $5 for year 2, $6 for year 3, and $7 for year 4. After the dividend payment for year 4, the stock is expected to sell for $80. If the discount rate for ABCs stock is 15%, what must be its a. expected price three years from now, after the dividend for the third year is paid? b. expected price two years from now, after the dividend for the second year is paid? c. expected price a year from now, after the dividend for the first year is paid? d. expected price now?
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