Target Corp

question 58

Multiple Choice

Target Corp. (TGT) recently earned a profit of $3.57 earnings per share and has a P/E ratio of 17.3. The dividend has been growing at a 14 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 23 in five years?

• A) $118.85, $158.01 respectively
• B) $137.19, $182.39 respectively
• C) $173.87, $231.15 respectively
• D) $308.81, $410.55 respectively

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Definitions:

Conflict

A disagreement over issues of substance and/or an emotional antagonism.

Change Leadership

The process and techniques used by individuals in an organization to inspire and lead others through significant transformations.

Learning Organisations

Organizations that have developed the capability to continuously learn, adapt, and change through the collection, management, and utilization of knowledge.

Competitive

Relating to or characterized by rivalry between entities such as businesses or individuals striving for the same objective or market dominance.