ABC Inc.’s first dividend of $2.60 per share is expected to be paid six years from...

ABC Inc.’s first dividend of $2.60 per share is expected to be paid six years from today. From then on, dividends will grow by 10 percent per year for five years. After five years, the growth rate will slow to 5 percent per year in perpetuity. Assume that ABC's required rate of return is 13 percent. What is the price of a share of ABC Inc. today?

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jeff jeffy answered 1 year ago

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