The Growth in Per Share FCFE of SYNK, Inc

question 50

Multiple Choice

The growth in per share FCFE of SYNK, Inc. is expected to be 8% per year for the next two years, followed by a growth rate of 4% per year for three years. After this five-year period, the growth in per share FCFE is expected to be 3% per year, indefinitely. The required rate of return on SYNC, Inc. is 11%. Last year's per share FCFE was $2.75. The first three dividends are worth _______ today.

• A) $12.14
• B) $0
• C) $3.81
• D) $2.37
• E) None of the above

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Definitions:

Multidose Vial

A vial of liquid medication intended for use in more than one dose, often containing a preservative to inhibit microbial growth.

Medication

A substance used for medical treatment, especially a medicine or drug.

Pharmacist

A healthcare professional who is licensed to prepare, dispense, and provide advice on the safe use of medicines.

Oz

An abbreviation for ounce, a unit of weight commonly used in the United States, equal to approximately 28.35 grams.