The Growth in Per Share FCFE of SYNK,Inc

question 40

Multiple Choice

The growth in per share FCFE of SYNK,Inc.is expected to be 8%/year for the next two years,followed by a growth rate of 4%/year for three years; after this five year period,the growth in per share FCFE is expected to be 3%/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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