Question
Two months ago, Alpha Beta Corp. (ABC) paid a $2.40 dividend (it pays dividends quarterly). Future dividends are expected to grow at the constant rate
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Two months ago, Alpha Beta Corp. (ABC) paid a $2.40 dividend (it pays dividends quarterly). Future dividends are expected to grow at the constant rate of 1% per quarter. If the stated annual required rate of return on ABC stock is 18%, what is the current stock price of ABC?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
