What is the expected value of the next dividend

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ABC" Company had just paid dividends for this year, and it is expecting both earnings and dividends to grow by 0% in Year 2, by 5% in Year 3, and at a rate of 10% in Year 4 and thereafter. The required rate of return (r) on "ABC" Company is 15%, and it is currently selling its stocks at a price of $49.87.

Problem 1: Based on the above-given information, What is the expected value of the next dividend, D1?

Reference no: EM132791355

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