Sorenson Corp is not expected to pay dividends until three years later The predicted dividend in the following future year end is D 3 $3, D 4 $3 6, D 5 $4 32, and the price at the end of year 5 is P 5 116 64 The stock's required return is R 12 00 What is the stock intrinsic value three years from now (P 3 ) based on the forecasts Select one a $99 64 b $101 63 c $96 25 d $105 19

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Question: Sorenson Corp. is not expected to pay dividends until three years later. The predicted dividend in the following future year-end is: D 3 = $3,

Sorenson Corp. is not expected to pay dividends until three years later. The predicted dividend in the following future year-end is: D₃ = $3, D₄ = $3.6, D₅ = $4.32, and the price at the end of year 5 is P₅=116.64

The stock's required return is R = 12.00%.

What is the stock intrinsic value three years from now (P₃) based on the forecasts?

Select one:

a. $99.64

b. $101.63

c. $96.25

d. $105.19

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