Abc inc is expected to pay a dividend of 315 per share next, Ask an Expert

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ABC, Inc. is expected to pay a dividend of $3.15 per share next year, and this dividend is expected to grow at a 5% rate annually forever thereafter. Given the risk level of the stock, investors require a 12% return. What should be the market price of ABC Inc.’s common stock?

$25.00

$26.25

$42.86

$45.00

None of the answers are correct.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92360282

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