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Use the following information for the next 6 questions. Suppose ABC stock is currently trading at $46 and is expected (1) to be worth $52

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Use the following information for the next 6 questions. Suppose ABC stock is currently trading at $46 and is expected (1) to be worth $52 at the end of one year and (2) to pay a $1 dividend. Assume ABC will pay the $1 dividend and is expected to grow their dividend at 5%. What is the intrinsic value of the stock? Use the constant growth dividend discount model and use same CAPM assumptions. Round to two decimal places. Question 6 4 pts What is the intrinsic value of ABC if there is zero expected growth? (Hint: use the same formula as the previous problem). Round to two decimal places

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