ABC Corporation
ABC Corporation just paid a dividend of $1.50 a share. The dividend is expected to grow at 10% a year for the next 2 years, and the 5% per year thereafter. The required return to invest in ABC stock is 12.50%.
-Suppose you want to buy ABC and hold it for the next 4 years.What would the selling price be for ABC in 4 years,assuming that none of our assumptions change?
A) $28.01
B) $28.76
C) $29.40
D) $30.80
Correct Answer:
Verified
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