Value a Constant Growth Stock Financial Analysts Forecast Target Corp

question 37

Multiple Choice

Value a Constant Growth Stock Financial analysts forecast Target Corp.(TGT) growth for the future to be 11 percent.Their recent dividend was $0.52.What is the value of their stock when the required rate of return is 11.89 percent?

• A)$5.25
• B)$6.48
• C)$58.43
• D)$64.85

---

Definitions:

Adaptation

The process by which a species becomes fitted to its environment; it is the result of natural selection acting upon heritable variation.

Drought Tolerant

Refers to plants that are able to survive and thrive in conditions with very little water.

Low-growing Grasses

Grass species that have a short stature, typically found in lawns or as ground cover.

Rain Shadows

Rain shadows are dry areas on the leeward side of mountain ranges, where the landscape blocks precipitation from reaching the interior.