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.

Question

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The Answer of 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.

Boaters World Is Expected to Have Per Share FCFE in Year