The Felix Corp

question 68

Multiple Choice

The Felix Corp. projects to pay a dividend of $.75 next year and then have it grow at 12% for the following 3 years before growing at 8% indefinitely thereafter. The equity has a required return of 10% in the market. The price of the stock should be _______.

• A) $9.38
• B) $17.05
• C) $41.67
• D) $59.80
• E) $62.38

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