ABC Inc.'s stock is currently selling for $72.6 per share. The company just paid its first annual dividend of $3.64 a share. The firm plans to increase the dividend by 6.1 percent per year indefinitely. What is the firm's cost of equity?
ABC's next dividend is expected to be $7.95, its required return is 18%, its growth rate is 3%. What is ABC's expected stock price in 19 years?