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:

Focused Freewriting

A writing strategy that involves continuous, non-stop writing focused on a specific topic or prompt to generate ideas and thoughts.

Sherman High School

A general term that could refer to any high school named after someone surnamed Sherman, without a specific location or context.

Nursing Student

An individual enrolled in a nursing program to learn and train to become a registered nurse or licensed practical nurse.

Global Warming

The long-term rise in Earth's average surface temperature, largely due to human activities such as burning fossil fuels.