(Answered) 1 sorenson corps expected year-end dividend is d1nbsp 160

Finance

1. Sorenson Corp.'s expected year-end dividend is D₁ = $1.60, its required return is r_s = 11.00%, 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 7 years, i.e., what is Pˆ₇?

a. $37.52

b. $39.40

c. $41.37

d. $43.44

e. $45.61

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