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