Question: abc just paid a dividend of d0 55 analysts...
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ABC just paid a dividend of D0 = $5.5. Analysts expect the company's dividend to grow by 33% this year, by 25% in Year 2, and at a constant rate of 6% in Year 3 and thereafter. The required return on this stock is 13%. What is the best estimate of the stock’s current market value?
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