Target Corp

question 115

Multiple Choice

Target Corp. (TGT) paid a $0.21 dividend per share in 2010, which grew to $0.52 in 2017. This growth is expected to continue. What is the value of this stock at the beginning of 2017 when the required rate of return is 14.77 percent?

• A) $3.52
• B) $55.32
• C) $62.97
• D) $63.49

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Definitions:

Study Time

The period dedicated to educational activities or acquiring knowledge through reading, practice, and research.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision.

Preferred Alternative

The most favorable option or choice among a set of possibilities, especially in the context of decision making or policy formulation.