Exhibit 13.3 Use the Information Below for the Following Problem(S)

question 78

Multiple Choice

Exhibit 13.3
Use the Information Below for the Following Problem(S)
The Home Appliance Industry had free cash flow to equity (FCFE) of $87 for the most recent year ending reported yesterday. The industry anticipates a growth rate of 8% for the next three years due to favorable economic conditions. However, the growth rate is expected to decline to 4% after three years and remain at that level indefinitely. The required rate of return is 12% for this industry.
-Refer to Exhibit 13.3.Calculate the intrinsic value of the Home Appliance Industry at the end of the 8% growth period three years from now.

• A) $109.59
• B) $113.98
• C) $949.83
• D) $1,369.94
• E) $1,424.73

---

Definitions:

Cardiovascular Complications

Health problems related to the heart and blood vessels, often resulting from conditions like hypertension, diabetes, or lifestyle choices.

Kidney Damage

Harm or dysfunction of the kidneys, which can impair their ability to filter blood and regulate fluids and electrolytes in the body.

Amenorrhea

Cessation of the menses.

Menstrual Periods

The regular, cyclic discharge of blood and mucosal tissue from the inner lining of the uterus through the vagina, typically lasting for a few days every month in non-pregnant premenopausal women.