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Q: Stock price ( No Answer,   1 Comment )
Question  
Subject: Stock price
Category: Business and Money > Finance
Asked by: rukmini-ga
List Price: $8.00
Posted: 28 Jan 2006 08:05 PST
Expires: 27 Feb 2006 08:05 PST
Question ID: 438606
Company ABC's earnings and dividends will grow at 0.5% monthly during
the nest 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 $10 and the dividend is $5 and the market capitalization
rate is 9%. What is ABC's stock price?
Answer  
There is no answer at this time.

Comments  
Subject: Re: Stock price
From: omnivorous-ga on 28 Jan 2006 08:17 PST
 
A similar problem.  What confuses the commenters is that dividends =
earnings after year 5:
http://answers.google.com/answers/threadview?id=569844

Best regards,

Omnivorous-GA

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