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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Usability Labs

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Nielsen's Severity Rating Scale

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