Sorenson Corp

question 43

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 ?

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

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Definitions:

Alkaline

Referring to a basic, as opposed to acidic, substance with a pH level greater than 7.

Hydroxide Ions

Negatively charged ions, OH-, produced when a hydroxide compound dissolves in water, basic in nature.

Bases

Substances that accept protons according to the Brønsted-Lowry definition or donate electrons in the Lewis definition, commonly displaying a pH greater than 7.

Buffers

Substances that minimize changes in the pH of a solution when an acid or base is added to it, helping to maintain stability in biological systems.