Abc corp has just paid a dividend of 3 per share you-an


Question: ABC Corp. has just paid a dividend of $3 per share. You-an experienced analyst-feel quite sure that the growth rate of the company ' s dividends over the next 10 years will be 15% per year. After 10 years you think that the company ' s dividend growth rate will slow to the industry average, which is about 5% per year. If the cost of equity for ABC is 12%, what is the value today of one share of the company?

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Management Theories: Abc corp has just paid a dividend of 3 per share you-an
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