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

Assess the impact of trade on job markets within the context of comparative advantages.

Interpret public opinions and economist views on the advantages and disadvantages of free trade.

Recognize the implications of trade policies for economic welfare and market equilibrium.

Understand the basic principles of domestic supply and demand in the absence of international trade.

---

Definitions:

Reasonable Mode

pertains to a method or manner of action that is considered fair, sensible, and appropriate under the given circumstances.

Merely Inquiring

Simply asking questions or seeking information without implying further action or commitment.

Constitutes Rejection

Acts or circumstances that are deemed to legally reject or decline an offer or proposal.

Definite Terms

The clear and specific conditions included in a contract that describe the rights and obligations of each party.