What is the value of ibm stock

Reference no: EM131794677

Question: ABC comapmy just paid a dividend of $1.6 per share. You expect ABC's dividend to grow at a rate of 9% per year for the next three years, and then you expect constant dividend growth of 4% forever. Based on the risk of ABC's stock, you require a return of 13%. Using the dividend discount model, what is the value of IBM stock?

Reference no: EM131794677

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