The Felix Corp

Multiple Choice

The Felix Corp. projects to pay a dividend of $.75 next year and then have it grow at 12% for the following 3 years before growing at 8% indefinitely thereafter. The equity has a required return of 10% in the market. The price of the stock should be _______.

A) $9.38
B) $17.05
C) $41.67
D) $59.80
E) $62.38