Boaters World Is Expected to Have Per Share FCFE in Year

question 101

Multiple Choice

Boaters World is expected to have per share FCFE in year 1 of $1.65, per share FCFE in year 2 of $1.97, and per share FCFE in year 3 of $2.54.After year 3, per share FCFE is expected to grow at the rate of 8% per year.An appropriate required return for the stock is 11%.The stock should be worth _______ today.

• A)$77.53
• B)$40.67
• C)$82.16
• D)$71.80

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Definitions:

Positive Punishment

Adding an unpleasant stimulus in response to a behavior to decrease the likelihood of that behavior happening in the future.

Negative Punishment

A behavioral modification technique where a desirable stimulus is removed following an unwanted behavior, decreasing the likelihood of that behavior occurring again.

Mild Punishers

Interventions or consequences designed to decrease a behavior's occurrence, which are not severe or harsh.

Flooding

A behavioral therapy technique used to treat phobias and anxiety disorders by exposing the patient to their fear at its most intense level, without any danger, to eliminate the fear response.