Question: Sorenson Corp. ' s expected year - end dividend is D 1 = $ 1 . 4 0 , its required return is rs =

Sorenson Corp.'s expected year-end dividend is D1= $1.40, its required return is rs =13.00%, 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 8 years, i.e., what is P8? Do not round intermediate calculations.
a. $40.09
b. $62.03
c. $24.97
d. $37.47
e. $37.19

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