The companys analysts predict that earnings and dividends


ABC Co. has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate of 5% annually forever. Assume that r = 8% and Div0 = $2.00. What will be the price of the company's stock 3 years from now?

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Finance Basics: The companys analysts predict that earnings and dividends
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