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

$30.00

Answer rating: 100% (QA)

a 4280 We can use the Gordon Growth Model also known as the dividend discount model to ... View the full answer