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Problem:

ABC's last dividend was $2.2. The dividend growth rate is expected to be constant at 21% for 3 years, after which dividends are expected to grow at a rate of 6% forever.

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Question: If the firm's required return (rs) is 14%, what is its current stock price (i.e. solve for Po)?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169304

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