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Abc company announced today that it will begin paying

ABC Company announced today that it will begin paying annual dividends next year. The first dividend will be $0.10 per share. The following dividends will be $0.20, $0.40, $0.50, and $0.60 a share annually for the following 4 years respectively. After that dividends are projected to increase by 4.0 percent per year. How much are you willing to pay to buy one share of this stock today if your desired rate of return is 10.0 percent?

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Finance Basics: Abc company announced today that it will begin paying

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