Question
Sorenson Corp.'s expected year-end dividend is D 1 = $1.60, its required return is r s = 11.00%, its dividend yield is 4.50%, and its
Sorenson Corp.'s expected year-end dividend is D1= $1.60, its required return is rs= 11.00%, its dividend yield is 4.50%, and its growth rate is expected to be constant in the future. What is Sorenson's expected stock price in 8 years, i.e., what is P8?
A.65.32
B.58.84
C.61.49
D.56.20
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
