If Target Corp

question 47

Multiple Choice

If Target Corp. (TGT) recently earned a profit of $6.07 earnings per share and has a P/E ratio of 16.5. The dividend has been growing at a 10 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 18 in five years?

• A) $100.16, $109.26 respectively
• B) $161.30, $175.96 respectively
• C) $259.78, $283.39 respectively
• D) $261.30, $275.96 respectively

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Definitions:

Murdered

The unlawful premeditated killing of one human being by another.

Collect Proceeds

To receive payment or benefits, typically from an insurance policy, investment, or similar financial sources.

Insurance Policy

A contract between an insurer and a policyholder that defines the terms of insurance coverage, including the obligations, liabilities, and benefits.

Fraud

The wrongful or criminal deception intended to result in financial or personal gain.