Part A: If ABC Corp has common stock and has just issued a dividend of $1.25 (Do) has a required rate of return of 13 ½ % and a growth rate of 9%. What is the value of the stock assuming growth?
Part B: If ABC Corp has common stock and has just issued a dividend of $1.25 (Do) has a required rate of return of 13 ½ % and a growth rate of 9%. What is the value of the stock assuming no growth?
Part C: what would the dividends be in year 3 and year 5?