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# ABC Company's last dividend was \$2. The dividend growth rate is expected to be constant at 8% for 4 years, after which dividends are expected to grow...

1. ABC Company's last dividend was \$2.7. The dividend growth rate is expected to be constant at 8% for 4 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (rs) is 9%. What is its current stock price (i.e. solve for Po)?

2.The exchange rates in New York are: \$1 = AUD 1.2249 and \$1 = £0.7842

A dealer is offering a quote: AUD 1 = £0.8926.

What is the profit you can earn on \$28,281 using triangle arbitrage?

Answer 1) Current stock price = 55.23 2) P... View the full answer

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