If Target Corp

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