The Growth in Per Share FCFE of SYNK, Inc

question 68

Multiple Choice

The growth in per share FCFE of SYNK, Inc.is expected to be 8% per year for the next two years, followed by a growth rate of 4% per year for three years; after this five-year period, the growth in per share FCFE is expected to be 3% per year, indefinitely.The required rate of return on SYNC, Inc.is 11%.Last year's per share FCFE was $2.75.What should the stock sell for today

• A)$28.99
• B)$35.21
• C)$54.67
• D)$56.37
• E)$39.71

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Definitions:

SA Node

The SA Node, or sinoatrial node, acts as the heart's natural pacemaker, generating electrical impulses that initiate the heartbeat.

Right Ventricle

One of the four chambers of the heart, responsible for pumping oxygen-depleted blood to the lungs.

Pulmonary Semilunar

Referring to the pulmonary semilunar valve, one of the heart's valves that prevents blood from flowing back into the right ventricle from the pulmonary artery.

Tricuspid

Referring to a valve in the heart that lies between the right atrium and the right ventricle, ensuring the flow of blood in one direction.