Sorenson Corp.'s expected year-end dividend is D1 = $1.50, its required return is rS = 12.00%, its dividend yield is 8.00%, 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 P7?
A) $24.67
B) $25.91
C) $27.20
D) $28.56
Correct Answer:
Verified
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