Analysts forecast that abc inc will pay a dividend of 250 a


Analysts forecast that ABC. Inc will pay a dividend of $2.50 a share now, continuing a long-term growth trend of 10% per year. If this trend is expected to continue indefinitely, and investors' required rate of return for ABC is 12%: What is the market value per share of ABC's common stock? What is the market value per share of ABC's common stock if required rate of return is 16%? If there is expected to be non-constant growth of 20% for the first year, then 18% for the next year, then 16% for the next year, finally stabilizing to a constant growth of 10% per year in the 4th year what is the market value per share?

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Financial Management: Analysts forecast that abc inc will pay a dividend of 250 a
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