Abc inc currently pays an annual dividend of 3 per share on, Ask an Expert

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ABC Inc. currently pays an annual dividend of $3 per share on its common stock. As the company expands their business into the global market, they expect dividend to grow at a supernormal rate of 20% for the next three years. After that, the dividend is expected to grow at a normal rate of 5%. Assume the interest rate is 10%, what is the current stock price?

A. $75.25

B. $86.33

C. $89.66

D. $92.53

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91626105

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