Assume ABC Corp. pays the dividend of $5.60 this year. For the next 25 years,...
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Finance
Assume ABC Corp. pays the dividend of $5.60 this year. For the next 25 years, the firms dividend will grow by 5.2%, then it will grow by 4.6% each year afterwards. The required rate of return for the firms industry is 11.1%. What is the present value of the firms stock under the Dividend Discount Model?
Group of answer choices
$97.36
$96.58
$17.03
$91.02
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