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Suppose AC Corp is expected to increase dividends by 15% in the first two years and by 10% in the following two years. After then dividends will increase at a rate of 6% per year indefinitely. The last dividend payment was $2. The required return for the stock is 12.1%. What is the expected price of the stock three years from now (P3)?What is the estimated current stock price (P0)?

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Financial Management, Finance

Category:- Financial Management
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