Calculate present value of continuing value of sunshine

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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 2014 and beyond will be 4% (i.e. g). 2009 2010 2011 2012 2013 2014 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 2014 using the perpetuity-with-growth model.

Reference no: EM131319191

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