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Sedgwick, Inc. has a 12% required rate of return. It does not expect to initiate dividends for 15 years, at which time it will pay
Sedgwick, Inc. has a 12% required rate of return. It does not expect to initiate dividends for 15 years, at which time it will pay $2.00 per share in dividends. At that time, Sedgwick expects its dividends to grow at 7% forever. What is an estimate of Sedgwick's price in 15 years (P15) if its dividend at the end of year 15 is $2.00?
$42.80
$33.40
$31.20
$30.00Step by Step Solution
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