How much you would pay for the stock based on dgm model

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Reference no: EM131495632

ABC Inc. paid a dividend of $1 per share last year. You expect that its dividend will increase at 5% per year for the foreseeable future. The current market requires a return of 10% for the stock.

Question:

• How much you would pay for the stock based on DGM model?

Reference no: EM131495632

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