What is sorenson expected stock price in seven years

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1. ABC’s last dividend paid was $1, its required return is 14.6%, its growth rate is 4.4%, 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 P7?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

2. ABC's stock has a required rate of return of 16.1%, and it sells for $58 per share.  The dividend is expected to grow at a constant rate of 5.3% per year.  What is the expected year-end dividend, D1?

Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

Reference no: EM131966546

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