The growth in dividends of ABC, Inc. is expected to be 15% p…
The growth in dividends of ABC, Inc. is expected to be 15% per year for the next three years, followed by a growth rate of 8% per year for two years. After this five-year period, the growth in dividends is expected to be 5% per year, indefinitely. The required rate of return on ABC, Inc. is 12%. The trailing twelve months of dividends per share were $2.00. What should the stock sell for today?