Target Corp

question 70

Multiple Choice

Target Corp. (TGT) paid a $0.21 dividend per share in 2000, which grew to $0.52 in 2007. This growth is expected to continue. What is the value of this stock at the beginning of 2007 when the required rate of return is 14.77 percent?

• A)$3.52
• B)$55.32
• C)$62.97
• D)$63.49

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the present value of all future cash flows minus the initial investment cost.

Simulation Analysis

is a method used in risk management to model possible outcomes of a decision by manipulating variables within mathematical or computer simulations.

NPV Estimates

Projections or calculations of the Net Present Value for different investments or projects to aid in decision-making.

Simulation Analysis

A technique used to predict the outcome of a project or investment by running multiple simulations with various sets of assumptions.