Answered>Order 1397

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.