What should the stock sell for today

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Question 1: The growth in dividends of ABC, Inc. is expected to be 15%/year for the next three years, followed by a growth rate of 8%/year for two years; after this five year period, the growth in dividends is expected to be 3%/year, indefinitely. The required rate of return on ABC, Inc. is 13%. Last year's dividends per share were $1.85. What should the stock sell for today?

Reference no: EM132538208

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