ABC is a profitable company that is expected to pay a €4.25

jagguarpaw January 9, 2017 0 Comments

Question: ABC is a profitable company that is expected to pa…

ABC is a profitable company that is expected to pay a €4.25 dividend next year. The best estimate is that dividends will decline forever at a rate of 10 percent. The required rate of return on ABC stock is 12 percent. What is the value of ABC shares?