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What is the current share price of abc plc

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ABC Plc has just announced it plans to raise $180m to fund international expansion. Some investors have expressed concerns at company's plans amid current slowdown in company's home market. You are asked to re-evaluate company's current stock price. The company paid an annual dividend of 15p per share. For the next three years dividends are expected to grow at 12% per year. After the third year the dividend will grow at only 7% per annum. Equity holders require a return of 16% per annum from the firm.

Using the information known about current dividends and growth rate, what is the current share price of ABC Plc?

Reference no: EM132483067

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