ABC,. Inc just paid a dividend of $30.79. The dividends are expected to grow by 11% in Years After that, the dividends are expected to grow by 6% each year. If the required rate of return 15%, what is today's price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Ee 143.

ABC,. Inc just paid a dividend of $30.79. The dividends are expected to grow by 11% in Years 1-3.
After that, the dividends are expected to grow by 6% each year. If the required rate of return is
15%, what is today's price of the stock?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer
box.
Transcribed Image Text:ABC,. Inc just paid a dividend of $30.79. The dividends are expected to grow by 11% in Years 1-3. After that, the dividends are expected to grow by 6% each year. If the required rate of return is 15%, what is today's price of the stock? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
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