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ABC Co.. just paid a dividend of $1.69 per share on its stock. The dividends are expected to grow at a constant rate of 7.2%

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= growth rate Price PO D1 = DO*(1+g) = 1.69*(1+0.072) = $ 1.81168 PO = D1/(Ke-g) = 1.81168/(0.122-0.072) 36.2336 Price of Sto

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