Calculate the present value of continuing value of sunshine


Sunshine Company operates retail sunglass kiosks in shopping malls. Below is information related to the company. Required rate of return on equity (RE) is 8.5%. Assuming that steady-state growth in year 2022 and beyond will be 4% (i.e. g). 2017 2018 2019 2020 2021 2022 Dividends to Common Equity (in thousands) $412 $478 $636 $827 $950 $1,284 Common Shares Outstanding (in thousands) 1,512 Calculate the present value of continuing value of Sunshine at the start of 2022 using the perpetuity-with-growth model. $2,512.23 $18,976 $1,403.28 $21,488.2

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Financial Management: Calculate the present value of continuing value of sunshine
Reference No:- TGS02401527

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