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Sedgwick, Inc. has a 12% required rate of return. It does not expect to initiate divi-dends for fifteen 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. If you currently own the stock and will sell it following the first dividend, what is your estimated selling price at T15?

User Eclectic
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Answer:

$42.8

Step-by-step explanation:

Please see attachment .

Sedgwick, Inc. has a 12% required rate of return. It does not expect to initiate divi-example-1
User Cuiboy
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