5. ABC Inc. paid dividends of $13 per share to its shareholders last year. Assume that the value of the company has a discount rate of 17% and that dividends are growing at 4% per y Calculate the current price of the stock.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter7: Stocks (equity) - Characterstics And Valuation
Section: Chapter Questions
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5.
ABC Inc. paid dividends of $13 per share to its shareholders last year. Assume that the
value of the company has a discount rate of 17% and that dividends are growing at 4% per year
Calculate the current price of the stock.
Transcribed Image Text:5. ABC Inc. paid dividends of $13 per share to its shareholders last year. Assume that the value of the company has a discount rate of 17% and that dividends are growing at 4% per year Calculate the current price of the stock.
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