The Growth in Dividends of ABC,Inc

question 98

Multiple Choice

The growth in dividends of ABC,Inc.is expected to be 15%/year for the next three years,followed by a growth rate of 8%/year for two years; after this five year period,the growth in dividends is expected to be 3%/year,indefinitely.The required rate of return on ABC,Inc.is 13%.Last year's dividends per share were $1.85.What should the stock sell for today?

• A)$8.99
• B)$25.21
• C)$40.00
• D)$27.74
• E)none of the above

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Definitions:

Electrolyte Balances

The levels of minerals in the body that have an electric charge, crucial for nerve and muscle function, hydration, blood pH, and other processes.

Sodium

A chemical element (symbol Na) that is highly reactive and essential for nerve and muscle function in the human body, commonly found in salt.

Kidney Tubules

The small tubes in the kidneys where reabsorption and secretion occur, playing a crucial role in the formation of urine.

Potassium

A chemical element with the symbol K and atomic number 19, essential for many bodily functions, including normal heart and muscle function.