ne stock's 2. (7 points) Sorenson Corp.'s expected year-end dividend is D. - $4.00, its...
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ne stock's 2. (7 points) Sorenson Corp.'s expected year-end dividend is D. - $4.00, its required return is rs - 11.00%, and its growth rate is expected to be constant at 5% in the future. What is Sorenson's expected stock price in 7 years, i.e., what is B? 3. (7 points) Goode Inc.'s stock has a required rate of return of 11.50%, and it sells for $29.00 per share. Goode's dividend is expected to grow at a constant rate of 7.00%. What was the last dividend, D? 4.(7 points) Earley Corporation issued perpetual preferred stock with an 5% annual dividend. The stock currently yields 7%, and its par value is $100. What is the preferred stock's value? 5. (14 points)Sexton Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. Calculate and compare the NPV and IRR for each project. Which project would you recommend the firm to take and why? WACC: 9.50% -$2,050 -$4,300 1 $750 $1,500 2 $760 $1.518 CFS CFL 3 $770 $1,536 $780 $1,554 ta ar free cash flow, model

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