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Finance

Problem:

ABC Stock currently pays a dividend of $4.00 a share. That dividend is expected to grow at 15% for the next 3 years, then 3% thereafter. The required rate of return is 7%.

Required:

Question: What is the intrinsic value of ABC's stock?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162401

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