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What will be equity value at the end of year t

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Reference no: EM133174657

Question - Forecast of dividends for company ABC is as follow:

Year

Expected dividend

t+1

$10

t+2

$20

t+3

$30

It is believed that dividends will be zero after year t+3. The company's cost of equity is 5%. Under What will be equity value at the end of year t?

Reference no: EM133174657

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