ABC Common Stock Is Expected to Have Extraordinary Growth of 20

question 82

Multiple Choice

ABC common stock is expected to have extraordinary growth of 20% per year for 2 years, after which the growth rate will settle into a constant 6%. If the discount rate is 15% and the most recent dividend was $2.50, what should be the approximate current share price?

• A) $31.16
• B) $33.23
• C) $37.39
• D)$47.77

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