Question: Brandy Clark, CFA, has forecast that Aceler, Inc., will pay its first dividend two years from now in the amount of S1.25. For the following

Brandy Clark, CFA, has forecast that Aceler, Inc., will pay its first dividend two years from now in the amount of S1.25. For the following year she forecasts a dividend of $2.00 and expects dividends to increase at an average rate of 7% for the foreseeable future after that. If the risk-free rate is 4.5%, the market risk premium is 7.5%, and Aceler's beta is 0.9, Clark would estimate the current value of Aceler shard as being closest to: Calculate the EV/EBITDA multiple A. $37 B. $39 C. $47

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