Calculate the estimate value of acp stock

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Anderson Concrete Pty Ltd just paid a dividend of $0.55 per share. It has recently introduced another product. As a result, dividends are expected to grow at 18% this year and the 2 following years. After that the growth rate will fall to 9% indefinitely. ACP has no long-term debt and its expected rate of return is 11.35%.

(A) Calculate the estimate value of ACP stock?

(B) What is the value of the stock at end of year 4?

Reference no: EM132621849

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