(Answered) Consider the stock of abc inc a growth stock that will

Finance

Consider the stock of ABC Inc., a growth stock that will increase its dividend by 20 percent for the next two years and then maintain a constant 12 percent growth rate, thereafter. The stock has a required rate of return of 17% and the most recent dividend (D₀) of $2.49 per share.

a. Draw a timeline for the cash flows for this stock

b. What is the value (price) of the stock today (i.e. P₀)_?

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