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You own some shares of company ABC. ABC is expected to pay a dividend of $ 5 next year. The dividend will grow at 1
You own some shares of company ABC. ABC is expected to pay a dividend of $ next year. The dividend will grow at per year for two years, then at forever. The ROE for ABC is The payout ratio is
a Whats the price of the stock today?
b Whats the price of the stock in year?
c What is the terminal value of the stock?
d What is D
e What is DD
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