What should the stock price be today


Problem: The ABX News Co. paid the last dividend (D0) of $2/share, and the dividend is expected to grow at a rate of 12% over the next 4 years. It will then grow at a normal, constant rate of 3% for the future. The rate of return is 11%. What should the stock price be today?

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Finance Basics: What should the stock price be today
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