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ABC's stock price

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 afteward, 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?

Thanks.

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Company ABC's earnings and dividends will grow at 0.7% monthly during the next five ...

Solution Summary

This provides the steps to calculate the ABC's stock price

$2.19