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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Groups of people who share common interests, values, or characteristics, often inhabiting a specific locality and interacting within a real or physical environment.

Community Spirit

A sense of unity, belonging, and mutual support shared among members of a community.

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Foreign travel with the goal of minimizing the environmental consequences of tourism as well as its possible negative effects on local cultures and economies, typically involving people from highly industrialized nations traveling to less developed countries.

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The practice of purchasing products and services that are environmentally friendly and have minimal impact on the earth's resources.