The Peterson Company Has FCFF of $1000

question 28

Multiple Choice

The Peterson Company has FCFF of $1000.FCFF is expected to grow by 12% next year.The cost of capital is 12% and the level of debt is $5000.The number of shares outstanding is 500.Calculate the firm's share price.

• A) $44
• B) $55
• C) $34.19
• D) $47.23
• E) $50

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