If a Company Has a Current Stock Price of $25

question 74

Multiple Choice

If a company has a current stock price of $25, an EPS of $2.75/share; EPS growth rate of 15% and the investors rate of return is 20%, calculate the NPVGO.

• A) $10.75
• B) $11.25
• C) $11.75
• D) $12.25
• E) $12.75

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Definitions:

Management

The process of dealing with or controlling things or people, often within an organization, including planning, decision making, organizing, leading, and controlling.

Motivation

Stimulation and inspiration to move; the leadership task of mobilizing people with different ideas, skills, and values to achieve a common mission; the experience of physical and emotional needs, progressing from basic needs for survival and security, to social needs for belonging and respect, to the complex need for fulfillment. See energize and empowerment.

Honesty

A moral character trait that involves being truthful, transparent, and free from deceit or theft.