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:

Commission

A fee or percentage allowed to agents or salespeople for their services.

Salesperson

An individual who sells goods and services to others, aiming to meet customers' needs and ensure satisfaction.

Nurse

A healthcare professional who is skilled in promoting and maintaining health.

Fair Labor Standards Act

Legislation in the United States that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.