The Growth in Per Share FCFE of FOX,Inc

question 108

Multiple Choice

The growth in per share FCFE of FOX,Inc.is expected to be 15%/year for the next three years,followed by a growth rate of 8%/year for two 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 FOX,Inc.is 13%.Last year's per share FCFE was $1.85.What should the stock sell for today?

• A)$28.99
• B)$24.47
• C)$26.84
• D)$27.74
• E)$19.18

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Definitions:

Tradable Emissions Permit

A market-based mechanism that provides economic incentives for achieving reductions in the emissions of pollutants, allowing companies to buy or sell emission rights.

Opportunity Cost

The importance of the next preferred option sacrificed by deciding on a course of action.

Sulfur Dioxide

A chemical compound with the formula SO2, commonly produced by volcanoes and industrial processes, known for its role in acid rain formation.

Environmental Standards

Rules and guidelines set by governments or international bodies to protect the environment from harmful industrial emissions and practices.