Suppose ABC's current price is P=$44.88. Analysts expect ABC not to pay any dividends in years 1,2,...,T, then start paying a $10 dividend per share in year T+1. The expected dividend growth will then be constant at g=5% (i.e., it will be $10*(1+g) in year T+2). ABC's discount rate is 12%. What is T? T=_ Answer the closest integer, e.g., 1. Question 1 options:

Suppose ABC's current price is P=$44.88. Analysts expect ABC not to pay any dividends in years 1,2,...,T, then start paying a $10 dividend per share in year T+1. The expected dividend growth will then be constant at g=5% (i.e., it will be $10*(1+g) in year T+2). ABC's discount rate is 12%. What is T? T=_ Answer the closest integer, e.g., 1. Question 1 options:

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 18MC

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