What is the price of this stock today given

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ABC Inc. paid its annual dividend of $2.0 per share today and the dividends are expected to grow at 25 percent annually for the next 3 years. Due to the nature of its business, the demand for its product and net income is expected to decline after 3 years and the firm plans to start reducing dividends by 5 percent indefinitely after three years. What is the price of this stock today given a required return of 15 percent?

Reference no: EM132502489

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