Sprockley Company has just paid a $1 per share dividend. It is expected that dividends...
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Sprockley Company has just paid a $1 per share dividend. It is expected that dividends will grow at 16% per year for the next 2 years, at 10% the third year and 8% in year 4. After that, dividend growth is expected to be 3% per year forever. Sprockleys equity ? is 0.9. If Treasury bills yield 5% and the market risk premium is 8.3%, what should be Sprockleys current stock price?
| $10.00 |
| $12.05 |
| $15.00 |
| $42.00 |
| $45.75 |
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