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Posted by:
Homeworkhelp 
Price Quoted by Student: $2.5 
Posted On: 20110319 08:08:26 


Question
Assume ABC is expected to pay a total cash dividend of $7.50 next year and its dividends are expected to grow at a rate of 5% per year forever. Assuming annual dividend payments, what is the current market value of a share of ABC stock if the required return on ABC common stock is 9%? 

Solutions 
Return on common stock r = (D1/ P0) + g
Current 

Attachment 1: Assume ABC is expected.xls

Solution Posted By: Homeworkhelp Posted on:
19032011 




 
