Multiple Choice
The growth in per share FCFE of FOX, Inc. is expected to be 15% per year for the next three years, followed by a growth rate of 8% per year for two 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 FOX, Inc. is 13%. Last year's per share FCFE was $1.85. The first three dividends are worth _______ today.
A) $12.14
B) $100
C) $3.81
D) $9.39
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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