P/E Ratio Model and Future Price Target Corp

question 95

Multiple Choice

P/E Ratio Model and Future Price 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:

Integrative Therapy

A therapeutic approach combining multiple theories and techniques from different therapies to fit the needs of the individual client.

Dialectical Behavior Therapy

A type of cognitive-behavioral therapy aimed at teaching people how to live in the moment, develop healthy ways to cope with stress, improve their relationships, and regulate their emotions.

Group Therapy

A form of psychotherapy involving a group of patients who share their experiences and work on their issues under the guidance of a therapist.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, but also used in the treatment of seizures and insomnia, known for their sedative effects.