If Target Corp

question 47

Multiple Choice

If Target Corp. (TGT) recently earned a profit of $6.07 earnings per share and has a P/E ratio of 16.5. The dividend has been growing at a 10 percent rate over the past few years. If this growth continues, what would be the stock price in five years if the P/E ratio remained unchanged? What would the price be if the P/E ratio increased to 18 in five years?

• A) $100.16, $109.26 respectively
• B) $161.30, $175.96 respectively
• C) $259.78, $283.39 respectively
• D) $261.30, $275.96 respectively

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Definitions:

Token Economy

A token economy is a behavior modification system used to increase desirable behavior and decrease undesirable behavior with the use of tokens (symbols) that can be exchanged for rewards.

Behavior Therapy

A therapeutic approach that seeks to change potentially self-destructive or unhealthy behaviors through a variety of techniques.

Psychodynamic Therapy

A therapeutic approach that emphasizes unconscious psychological processes and childhood experiences in influencing current behavior and thoughts.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thoughts and behaviors by challenging and altering cognitive distortions.