What is the price of the stock

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Abc was expected to pay dividends of 5$ per share one year from bow. This amount is expected ro remain constant forever on the relevant discount rate 10%. now suppose abc announces that it can retain and invest 1$ out of this earning each yearstarting one year from now. and continuing for 3 years. These investments will earn a return on equity of 20%. What is the price of the stock after including the value of this opportunity

Reference no: EM133074464

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