Theta Therapeutics Has the Following Information and Projections A) $14,156
B) $15,572
C) $17,129
D) $18,842
E) $20,726

question 20

Multiple Choice

Theta Therapeutics has the following information and projections.Use the FCFE model to calculate the intrinsic value of Theta's equity. $$\begin{array} { l r r r r } &{ \text { Current } } & & \\ & \text { year } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\text { EBIT (operating profit) } & \text { NA } & \$ 1,000 & \$ 1,100 & \$ 1,200 \\\text { Operating assets } & \$ 1,200 & \$ 1,300 & \$ 1,500 & \$ 1,600 \\\text { Operating liabilities }& \$ 300 & \$ 300 & \$ 400 & \$ 500 \\\text { Total Debt } & \$ 1,000 & \$ 900 & \$ 1,100 & \$ 1,200 \\\text { Tax rate } & \mathrm { NA } & 25 \% & 25 \% & 25 \% \\\text { Interest rate on debt } & \mathrm { NA } & 6 \% & 6 \% & 6 \% \\\text { long-term growth rate } & 4 \% & & &\\\text { Required return on equity }&9\%\end{array}$$

• A) $14,156
• B) $15,572
• C) $17,129
• D) $18,842
• E) $20,726

---

Definitions:

Ethical Untruths

Statements or strategies that deliberately bend or distort the truth for ethical purposes, often used in complex moral situations.

Political Relationships

Connections and interactions between individuals, groups, or organizations related to the pursuit and exercise of power in political contexts.

Expert Power

The influence one possesses due to their skills, knowledge, or expertise in a particular field or domain.

Coercive Techniques

Methods used to enforce compliance or change behavior through threats or force.