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pls help asap!! show calculations
ABC Co., just paid a dividend of $1.47 per share on its stock. The dividends are expected to grow at a constant rate of 6.1%
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Answer #1

Calculation of price in year 15

Price in Year 15 = Expected Dividend in year 16 / (Required Return - growth rate)

Expected Dividend in year 16 = 1.47 * (1 + growth rate)^16

= 1.47 * (1 + 0.061)^16

= 1.47 * 2.57896912228

= 3.79108460975

Price in Year 15 = 3.79108460975 / (0.111 - 0.061)

= 75.821692195 or $75.82

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