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Black Sheep Broadcasting Company (BSBC) just paid a dividend of $2.88 per share. The company expects the coming year to be veCalculate: 1. Horizon Value 2. Intrinsic Value 3. the expected dividend yield for black sheep's stock today

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Answer #1

Required return of stock, RR = Rf + Beta * RPm = 5% +0.90 * 6% = 5% + 5.4% = 10.4% Just paid dividend DO = $2.88 Growth rate,

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