Assume ABC Corp. pays the dividend of $4.50 this year. For the next 30 years, the firm's dividend will grow by 5.4%, then it will grow by 5.3% each year afterwards. The required rate of return for the firm's industry is 11.2%. What is the present value of the firm's stock under the Dividend Discount Model? O $65.38 O $81.48 $16.10 O $89.24 4

Assume ABC Corp. pays the dividend of $4.50 this year. For the next 30 years, the firm's dividend will grow by 5.4%, then it will grow by 5.3% each year afterwards. The required rate of return for the firm's industry is 11.2%. What is the present value of the firm's stock under the Dividend Discount Model? O $65.38 O $81.48 $16.10 O $89.24 4

Name: Assume ABC Corp. pays the dividend of $4.50 this year. For the next 3
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Description: Assume ABC Corp. pays the dividend of $4.50 this year. For the next 30 years, the firm's dividendwill grow by 5.4%, then it will grow by 5.3% each year afterwards. The required rate of return for thefirm's industry is 11.2%. What is the present valu

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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