A Firm Has 120,000 Shares of Stock Outstanding, a Sustainable

question 73

Multiple Choice

A firm has 120,000 shares of stock outstanding, a sustainable rate of growth of 3.8, and $648,200 in free cash flows. What value would you place on a share of this firm's stock if you require a 14% rate of return?

• A) $48.09
• B) $52.96
• C) $54.02
• D)$61.58

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Definitions:

Well-Adjusted People

Individuals who are capable of coping effectively with the demands of life, maintaining satisfactory relationships, and participating in society in a constructive way.

Maslow

A reference to Abraham Maslow, an American psychologist who is best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Unconventional

Not based on or conforming to what is generally done or believed.

Creative

Being creative refers to the ability or quality of generating new and innovative ideas, solutions, or artistic expressions.