Company ABC's earnings and dividends will grow at 0.7% monthly during the next five years. Its growth will stop after year 5. In year 6 and afterward, it will pay out all earnings as dividends. Assume next year's EPS is $12 and the dividend is $8 and the market capitalization rate is 8%.
What is ABC's stock price?© BrainMass Inc. brainmass.com June 3, 2020, 6:55 pm ad1c9bdddf
Computations shown for you in excel.