The Growth in Per Share FCFE of SYNK, Inc

question 4

Multiple Choice

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

A major muscle in the neck that facilitates head rotation and flexion.

Laterally Flexes

The act of bending the spine or another part of the body side to side, away from the midline of the body.

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To turn or revolve around an internal axis or center point.