You Must Estimate the Intrinsic Value of Noe Technologies' Stock

question 49

Multiple Choice

You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $27.50 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

• A) $48.64
• B) $50.67
• C) $52.78
• D) $54.89
• E) $57.08

---

Definitions:

Knowledge Sharing

The activity of exchanging information, insights, and experiences among individuals or organizations.

Boundary Activities

Actions taken to manage and negotiate the limits and interfaces between different roles, groups, or organizations, often to facilitate cooperation or protect autonomy.

Team Innovation

The process by which novel ideas, products, or solutions are generated through collaborative efforts within a team.

Organizational Effectiveness

Refers to how efficiently and effectively an organization meets its goals and satisfies its stakeholders.