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52 Sorenson Corp.'s expected year-end dividend is D1 = $1.00, its required return is rs = 15.00%, its dividend yield is 6.00%, and its growth

52

Sorenson Corp.'s expected year-end dividend is D1 = $1.00, its required return is rs = 15.00%, its dividend yield is 6.00%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 6 years, i.e., what is P6? Do not round intermediate calculations. a. $18.17 b. $23.64 c. $38.55 d. $27.95 e. $25.64

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