Zero Had a FCFE of $4

question 45

Multiple Choice

Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding.Zero's required return on equity is 10%, and WACC is 8.2%.If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares is

• A)$108.00.
• B)$1080.00.
• C)$26.35.
• D)$14.76.

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Definitions:

Industrial Revolution

A period of major industrialization that took place during the late 1700s and early 1800s, leading to significant changes in society and the economy through the introduction of new technologies and processes.

Technological Revolution

A period of rapid technological change and innovation that significantly alters industries, economies, and societies.

Scientific Revolution

A period of significant advancements and developments in the fields of science during the 16th and 17th centuries, fundamentally changing the understanding of the natural world.

Postindustrial Revolution

A phase of societal development marked by a shift from manufacturing-based economies to service-oriented, information-based economies.