How much would stock abc be worth today

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Problem 1: ABC Ltd. has just distributed a dividend of $4. It is expected that the company will increase its dividend by 18% in the coming year, and 12% in the second year and third year. Starting from the fourth year, the company will maintain the dividend growth rate at 10% per year forever. How much would Stock ABC be worth today if its yearly required rate of return is 12%?

Reference no: EM132880919

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