It will pay no dividends after that if you require a rate


ABC Corp. will pay dividends of $7.75, $8.50, $9.75, and $10.25 at the end of years 1, 2, 3, and 4, respectively. It will pay no dividends after that. If you require a rate of return of 14 percent from stocks in this risk class, how much is the stock worth to you?

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Finance Basics: It will pay no dividends after that if you require a rate
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