Zeta Technologies Has the Following Projections A) $21,165
B) $23,282
C) $25,610
D) $28,171
E) $30,988

question 30

Multiple Choice

Zeta Technologies has the following projections.It has no non-operating assets.Calculate Zeta's intrinsic value of equity using the FCFE model. $\begin{array}{cccc}&\text { Current }\\&{\text { year }} & \text { Year 1 } & \text { Year 1 } & \text { Year 3 } \\\text { FCF }&\mathrm{NA} & \$ 1,000 & \$ 1,200 & \$ 1,248 \\\text { Total debt }&\$ 3,000 & \$ 3,900 & \$ 4,290 & \$ 4,462\\\text { Interest rate on debt } & 6 \% & 6 \% & 6 \% & 6 \% \\\text { Tax rate } & 25 \% & 25 \% & 25 \% & 25 \%\\\text { Long-term growth rate } & 4 \% \\\text { Required return on } & \\\text { equity } & 9 \%\end{array}$

• A) $21,165
• B) $23,282
• C) $25,610
• D) $28,171
• E) $30,988

Analyze the profitability and strategic actions necessary for managing different types of customers.

Understand the concept of customer lifetime value (CLV) and how it is calculated.

Recognize different customer profitability analysis categories.

Identify the factors that influence customer profitability, including networking and learning potential.

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Definitions:

Residential Rental Properties

Real estate properties that are leased or rented out to individuals to live in, as opposed to commercial properties.

Flow-Through Entities

Business entities that pass their income, deductions, and credits down to their owners for tax purposes, avoiding taxation at the corporate level.

LLC's

Stands for Limited Liability Companies, a business structure in the U.S. that offers personal liability protection to its owners but can be taxed as a partnership.

S Corporations

A special designation of corporation that allows income to be taxed only at the shareholder level, avoiding double taxation.