The Growth in Per Share FCFE of CBS,Inc

question 122

Multiple Choice

The growth in per share FCFE of CBS,Inc.is expected to be 10%/year for the next two years,followed by a growth rate of 5%/year for three years; after this five year period,the growth in per share FCFE is expected to be 2%/year,indefinitely.The required rate of return on CBS,Inc.is 12%.Last year's per share FCFE was $2.00.What should the stock sell for today?

• A)$8.99
• B)$22.51
• C)$40.00
• D)$25.21
• E)$27.12

Recognize the relationship between efficiency and equity, including the trade-offs involved.

Identify how prices serve as economic signals in markets.

Understand the concept of total surplus and its components: consumer surplus and producer surplus.

Recognize the role of property rights in market efficiency.

---

Definitions:

Depressive Symptoms

Signs or indicators of depression, including but not limited to, persistent sadness, lack of interest, and fatigue.

Casual Sex

Sexual activity that occurs outside of a committed relationship context, often with no intention of establishing an emotional connection.

Television

An electronic device for receiving and displaying images and sound, used primarily for broadcasting visual content.