Sedgwick, Inc

question 34

Multiple Choice

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?

• A) $42.80
• B) $33.40
• C) $31.20
• D) $30.00

---

Definitions:

Criminal Responsibility

The legal concept determining whether an individual can be held accountable for their actions under the law, often considering factors like mental state.

Involuntarily Hospitalize

The act of admitting an individual to a psychiatric hospital against their will for the purpose of evaluation and treatment, typically because they pose a danger to themselves or others.

Civil Commitment

A legal process through which an individual with severe mental illness can be ordered by a court to receive treatment in a psychiatric hospital.

Psychiatric Hospital

A health care facility specializing in the diagnosis, treatment, and care of patients with mental illnesses.