Assume ABC Corp. pays the dividend of $4.55 this year. For the next 30 years, the...

Assume ABC Corp. pays the dividend of $4.55 this year. For the next 30 years, the firm's dividend will grow by 5.4%, then will grow by 4.7% each year afterwards. The required rate of return for the firm's industry is 10.8%. What is the present value of the firm's stock under the Dividend Discount Model?

Expert Solution

The answer is 86.42

calc:

jeff jeffy answered 2 years ago

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