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What is the price of the stock of company ABC is you know this will last...

What is the price of the stock of company ABC is you know this will last for 10 years and will pay dividends for 8 years beginning at the end of year 3. The dividend will be a flat $1 pero year. The discount rate is 10%

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Solution :

The price of the stock of company ABC = $ 4.41

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

jeff jeffy answered 5 months ago
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