Value a Constant Growth Stock Financial Analysts Forecast Target Corp

question 37

Multiple Choice

Value a Constant Growth Stock Financial analysts forecast Target Corp.(TGT) growth for the future to be 11 percent.Their recent dividend was $0.52.What is the value of their stock when the required rate of return is 11.89 percent?

• A)$5.25
• B)$6.48
• C)$58.43
• D)$64.85

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Definitions:

Production

The method of merging different material and immaterial inputs, such as plans and expertise, to produce something that can be consumed.

Opportunity Cost

The penalty for not embracing the immediate subsequent advantageous alternative when choosing.

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A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant.

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A species of fish often considered for its health benefits and widely consumed around the world.