See Candy Had a FCFE of $6

question 87

Multiple Choice

See Candy had a FCFE of $6.1M last year and has 2.32M shares outstanding. See's required return on equity is 10.6%, and WACC is 9.3%. If FCFE is expected to grow at 6.5% forever, the intrinsic value of See's shares is

• A) $108.00.
• B) $68.30.
• C) $26.35.
• D) $14.76.

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