Siri Had a FCFE of $1

question 70

Multiple Choice

Siri had a FCFE of $1.6M last year and has 3.2M shares outstanding. Siri's required return on equity is 12%, and WACC is 9.8%. If FCFE is expected to grow at 9% forever, the intrinsic value of Siri's shares is

• A) $68.13.
• B) $18.17.
• C) $26.35.
• D) $14.76.
• E) None of the options are correct.

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Definitions:

Females

A term often used in research or statistics to denote the sex category of subjects or participants that identifies as female.

Hypotheses

Plural of hypothesis; statements or propositions made for the sake of argument that can be tested through experimentation or observation.

Standard Error

A measure of the accuracy of a sample mean by describing how much the sample mean deviates from the true population mean.

Means

Refers to the central tendency or average of a set of values, signifying a typical or representative value of the dataset.