The next dividend for ABC Limited will be $0.4 per share (D 1 ). Investors require a 10 % return on companies such as ABC Limited. ABC's dividend...
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The next dividend for ABC Limited will be $0.4 per share

(D 1). Investors require a 10 % return on companies such as ABC Limited. ABC's dividend increases by 5 % every year. Based on the dividend growth model what is the value of ABC Limited shares today? Price to the nearest cent. Do not enter the $ sign.

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P = D1/(k-g) where P= fair value of stock, D1 is dividend per share, k is... View the full answer

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