If a Company Has a Current Stock Price of $78

question 317

Multiple Choice

If a company has a current stock price of $78, an EPS of $1.10/share; EPS growth rate of 20% and the investors rate of return is 11.50%, calculate the cash cow price.

• A) $8.57
• B) $9.57
• C) $10.57
• D) $11.57
• E) $12.57

---

Definitions:

Williamson Ether Synthesis

A method for producing ethers by reacting an alkyl halide with an alcohol in the presence of a strong base.

Williamson Ether Synthesis

A reaction procedure for the preparation of ethers by reacting an alkyl halide with an alkoxide ion.

NMR Signals

Peaks observed in nuclear magnetic resonance spectroscopy that provide information about the environment of nuclear spins in a molecule.

Major Organic Product

The primary product obtained in the highest yield from an organic reaction.