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Consider the case of Black Sheep Broadcasting Company: Black Sheep Broadcasting Company (BSBC) just paid a dividend of $2.88 per share. The company expects the

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Consider the case of Black Sheep Broadcasting Company: Black Sheep Broadcasting Company (BSBC) just paid a dividend of $2.88 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20.00% over the next year. After the next year, though, Black Sheep's dividend is expected to grow at a constant rate of 4.00% per year. Complete the following table, assuming that the market is in equilibrium, and: The risk-free rate (TRF) is 5.00% The market risk premium (RPM) is 6.00%, and Black Sheep's beta is 1.80 Note: Do not round intermediate calculations. Term Value Dividends one year from now (D1) Horizon Value (HV) Intrinsic Value What is the expected dividend yield for Black Sheep's stock today? 0 13.14% O 11.80% 09.44% 0 11.35%

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