The Pekay Company Has FCFE of $800

question 68

Multiple Choice

The Pekay Company has FCFE of $800.FCFE is expected to grow by 7% next year.The cost of capital is 7% and the level of debt is $4000.The number of shares outstanding is 700.Calculate the firm's share price.

• A) $44.25
• B) $65.12
• C) $38.19
• D) $40.76
• E) $50.56

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Definitions:

Empowering Leadership

A leadership style focused on delegating power to employees, encouraging them to take initiative and make decisions.

Power Sharing

Power sharing involves distributing authority and decision-making power among multiple entities or individuals within an organization or system.

Transactional Leadership

A leadership model based on the exchange between leaders and followers, where leaders reward or punish followers based on their performance.

Self-interests

The personal gain or benefit that motivates individual actions and decisions, often prioritized over the interests of others.