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Sorenson Corp

Question 64

Multiple Choice

Sorenson Corp.'s expected year-end dividend is D1 = $4.00,its required return is rS = 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 Sorenson Corp.'s expected year-end dividend is D<sub>1</sub> = $4.00,its required return is r<sub>S</sub> = 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 ? A) $90.05 B) $85.36 C) $87.24 D) $76.92 E) $93.81 ?


A) $90.05
B) $85.36
C) $87.24
D) $76.92
E) $93.81

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