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 pˆ 7?

$93.80

Step-by-step explanation:

Data provided :

Year end dividend, D1 = $4.00

Required return, rs = 11% = 0.11

Dividend yield = 6% = 0.06

now,

Growth rate, g = Required return - Dividend yield

= 11% - 6%

= 5% = 0.05

Thus,

Sorenson’s expected stock price in 7 years =

here,

n is the number of years i.e  7

therefore,

Sorenson’s expected stock price in 7 years =

or

Sorenson’s expected stock price in 7 years = $93.80

step-by-step explanation:

the first 5 right here the next 5 i will upload as separate question

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step-by-step explanation: