You Must Estimate the Intrinsic Value of Tsetseko Technologies' Stock

question 15

Multiple Choice

You must estimate the intrinsic value of Tsetseko Technologies' stock.Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million,and it is expected to grow at a constant rate of 7.00% a year thereafter.The company's WACC is 10.00%.Tsetseko has $125.00 million of long-term debt plus preferred stock,and there are 15.00 million shares of common stock outstanding.What is Tsetseko's estimated intrinsic value per share of common stock?

• A)$28.16
• B)$29.33
• C)$30.56
• D)$31.78

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Definitions:

Innate Modules

Cognitive structures in the brain, believed to be pre-wired from birth, that help individuals process information in specific domains such as language and social interaction.

Reasoning Skills

The cognitive abilities that enable individuals to analyze information, solve problems, and make logical decisions.

Short-term Memory

The part of the memory system where small amounts of information can be stored for a brief period of time.

Information-processing Theorists

Researchers who study how human beings take in, utilize, store, and retrieve information, emphasizing the mental processes involved in cognitive development.