Zero Had a FCFE of $4

question 62

Multiple Choice

Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding.Zero's required return on equity is 10% and WACC is 8.2%.If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares are

• A)$108.00.
• B)$1080.00.
• C)$26.35.
• D)$14.76.
• E)None of the options

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