ABC, Inc. is expected to pay a dividend of $3.15 per share next year, and...
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ABC, Inc. is expected to pay a dividend of $3.15 per share next year, and this dividend is expected to grow at a 5% rate annually forever thereafter. Given the risk level of the stock, investors require a 12% return. What should be the market price of ABC Inc.s common stock? $25.00 $26.25 $42.86 $45.00 None of the answers are correct.
ABC, Inc. is expected to pay a dividend of $3.15 per share next year, and this dividend is expected to grow at a 5% rate annually forever thereafter. Given the risk level of the stock, investors require a 12% return. What should be the market price of ABC Inc.s common stock?
$25.00
$26.25
$42.86
$45.00
None of the answers are correct.
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