Sedge Inc Has a 12% Required Rate of Return

question 170

Multiple Choice

Sedge Inc. has a 12% required rate of return. It does not expect to pay dividends for seven years. At the beginning of year 8, it will pay $2.00 per share dividend. At that time, Sedge Inc. expects its dividend to grow at 7% forever. Calculate the stock price now.

• A) $40.00
• B) $35.71
• C) $31.88
• D) $24.62
• E) $18.09

---

Definitions:

Pages Per Second

A measure of the speed at which a printer or a device can print or process pages.

Cartoon

A form of visual art designed to convey a humorous or satirical message, often found in illustrations and animations.

Natural Appearance

A design or rendering approach meant to mimic the look and feel of real-world textures and colors in digital interfaces or graphics.

Audio Quality

The fidelity or clarity of sound output or recording, often evaluated based on factors like distortion, noise, bandwidth, and dynamic range.