4. Your analysis of ABL Ltds shares indicates that the company is not expected...
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Finance
4.
Your analysis of ABL Ltds shares indicates that the company is not expected to pay any dividends for the next two years. It is then likely to pay a dividend of $1.50 at the end of year 3, which is expected to grow at a rate of 12% p.a. for the next two years. Subsequently, these dividends are expected to grow at a rate of 4% p.a. for the foreseeable future. If investors require a return of 12% p.a. on the company's shares, its share price today should be closest to:
Group of answer choices
$17.08.
$13.88.
$24.46.
$21.43.
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