Target Corp

question 58

Multiple Choice

Target Corp. (TGT) recently earned a profit of $3.57 earnings per share and has a P/E ratio of 17.3. The dividend has been growing at a 14 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 23 in five years?

• A) $118.85, $158.01 respectively
• B) $137.19, $182.39 respectively
• C) $173.87, $231.15 respectively
• D) $308.81, $410.55 respectively

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Definitions:

Biological Gratification

The fulfillment of biological needs that is essential for the survival and well-being of an organism.

Dos and Don'ts

A list of recommended actions and practices to follow, and those to avoid, in a particular context.

Superiority

Superiority refers to the quality of being higher in status, quality, or importance compared to others.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the moral standards and ideals derived from the values of one's parents and society.