Boaters World Is Expected to Have Per Share FCFE in Year

Multiple Choice

Boaters World is expected to have per share FCFE in year 1 of $1.65, per share FCFE in year 2 of $1.97, and per share FCFE in year 3 of $2.54. After year 3, per share FCFE is expected to grow at the rate of 8% per year. An appropriate required return for the stock is 11%. The stock should be worth _______ today.

A) $77.53
B) $40.67
C) $82.16
D) $71.80
E) None of the options are correct.