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What are the steps to find stock price in 15 years if ABC's next dividend is expected to be $6.16, its required return is 18%, its growth rate is 7%.

How to find current stock price if ABC Company's last dividend was $0.9. The dividend growth rate is expected to be constant at 7% for 4 years, after which dividends are expected to grow at a rate of 5% forever. The firm's required return (rs) is 18%.

Steps t find rate of return on this stock. The common stock of ABC Industries is valued at $43.06 a share. The company increases their dividend by 6.6 percent annually and expects their next dividend to be $6.4.

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  • Category:- Basic Finance
  • Reference No.:- M93132022
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