Company abc has just paid a dividend of 35 cents per share


Company ABC has just paid a dividend of 35 cents per share. Because of its growth potential, its dividend is forecasted to grow at a rate of 5 percent per year indefinitely. If the company's appropriate cost of capital (given its risk) is 11 percent, what was ABC's share price immediately before it paid its 35-cent dividend, i.e the stock price right before the ex-dividend date? Show your work.

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Finance Basics: Company abc has just paid a dividend of 35 cents per share
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