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Sorenson Corp

Question 74

Multiple Choice

Sorenson Corp.'s expected year-end dividend is D1 = $1.60,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> = $1.60,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) $37.52 B) $39.40 C) $41.37 D) $43.44 E) $45.61


A) $37.52
B) $39.40
C) $41.37
D) $43.44
E) $45.61

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