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Need answer Fast! Suppose that today's stock price is $31. If the required rate on equity is 16.3% and the growth rate is 3.1%, compute the expected...

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Suppose that today's stock price is $31.05. If the required rate on equity is 16.3% and the growth rate is 3.1%, compute the expected dividend (i.e. compute D1)


ABC Inc.'s stock is currently selling for $88.33 per share. The company just paid its first annual dividend of $0.87 a share. The firm plans to increase the dividend by 5.4 percent per year indefinitely. What is the required rate of return on equity?




ABC's last dividend paid was $4.15, its required return is 20%, its growth rate is 6%. What is ABC's expected stock price in 19 years

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Answer Expected Dividend (D1) = 4.10 Required... View the full answer

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