If Target Corp

question 47

Multiple Choice

If Target Corp. (TGT) recently earned a profit of $6.07 earnings per share and has a P/E ratio of 16.5. The dividend has been growing at a 10 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 18 in five years?

• A) $100.16, $109.26 respectively
• B) $161.30, $175.96 respectively
• C) $259.78, $283.39 respectively
• D) $261.30, $275.96 respectively

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Definitions:

Commitment

The state or quality of being dedicated to a cause, activity, or organization, often reflected in a willingness to give time and energy to it.

Role Ambiguity

The uncertainty or lack of clarity surrounding the expectations, responsibilities, or duties of a particular role within an organization or group.

Tension

The state of being stretched tight or the mental or emotional strain a person may feel under pressure.

Relationship Role

The specific behaviors, responsibilities, and functions expected of an individual in the context of their interpersonal relationships.