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Problem:

The last dividend paid by a company was $3.25. ABC's growth rate is expected to be 12 percent for one year, after which dividends are expected to grow at a rate of 7 percent forever. The company's stockholders require a rate of return on equity (rs) of 14 percent.

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Question: What is the current price of the stock?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170680

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