Sorenson Corp.'s expected year-end dividend is
D_(1)=$1.80
, 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 9 years, i.e., what is
widetilde(P)_(9)
? Do not round intermediate calculations. a.
$76.74
b.
$44.32
c.
$31.50
d.
$46.54
, e.
$50.68

Question

Sorenson Corp.'s expected year-end dividend is

D_(1)=$1.80

, 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 9 years, i.e., what is

widetilde(P)_(9)

? Do not round intermediate calculations. a.

$76.74

b.

$44.32

c.

$31.50

d.

$46.54

, e.

$50.68

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