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Use the information to answer the following questions. ABC Company has been growing at a 10% rate, and it just paid a dividend of $3.00.

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Use the information to answer the following questions. ABC Company has been growing at a 10% rate, and it just paid a dividend of $3.00. Due to a new product, ABC expects to achieve a dramatic increase in its short-run growth rate, to 20% annually for the next 2 years. After this time, growth is expected to return to the long-run constant rate of 10%. The company's beta is 2.0, the required return on the market is 11%, and the T-bill rate is 7%. What should be the stock price today?? Continued from previous question. You expect the stock price to during the first year. Select one: a. Increase by 4.60% b. Decrease by 10.00% c. Increase by 10.40% d. Decrease by 4.60% e. Decrease by 10.40%

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