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 2022using the perpetuity-with-growth model.
