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The next dividend for ABC Corp. is expected to be $1.28. It will rise to $...

The next dividend for ABC Corp. is expected to be $1.28. It will rise to $ 2.06 the next year and grow at a constant 6.2% from then on. The required return is 12.1%.

What is the current price of the​ stock?

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Answer #1

B4 : X fc =+B3*1.062 А в с 1 PVIF @ 10.5% Present value 2 D1 1.28 0.905 $ 1.16 3 D2 2.06 0.819 $ 4 D3 2.19 5 Stock worth in 2

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