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URGENT! I need help on the two-stage gorden financial model question. (Question 5) STUDENT'S NAME: Yien San Wong MODULE 2 HOMEWORK Question 1 ABC Corp.
URGENT!
I need help on the two-stage gorden financial model question. (Question 5)
STUDENT'S NAME: Yien San Wong MODULE 2 HOMEWORK Question 1 ABC Corp. has a stock price P0 = 50. The firm has just paid a dividend of $3 per share, and knowledgable shareholders think that this dividend will grow by a rate of 5% per year. Use the Gordon dividend model to calculate the cost of equity of ABC. Current stock price, P0 Current dividend, D0 Dividend growth rate, g 50 3 0.05 Cost of equity from Gordon model ###Step by Step Solution
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