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ABC Corporation ABC Corporation Just Paid a Dividend of $1.50 a Share

Question 12

Multiple Choice

ABC Corporation
ABC Corporation just paid a dividend of $1.50 a share. The dividend is expected to grow at 10% a year for the next 2 years, and the 5% per year thereafter. The required return to invest in ABC stock is 12.50%.
-What is the expected dividend for ABC in year 2?


A) $1.65
B) $1.73
C) $1.82
D) $1.91

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