09 Jan

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

by On: Finance - 0 Comment

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?​

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