Highpoint Had a FCFE of $246M Last Year and Has

question 32

Multiple Choice

Highpoint had a FCFE of $246M last year and has 123M shares outstanding.Highpoint's required return on equity is 10% and WACC is 9%.If FCFE is expected to grow at 8.0% forever, the intrinsic value of Highpoint's shares are

• A)$21.60.
• B)$108.
• C)$244.42.
• D)$216.00.

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Definitions:

Innovation

The process of creating new ideas, products, or methods, often leading to improvements or advancements.

Illegal Ways

Actions or methods that are contrary to or forbidden by law.

Secondary Deviance

In labeling theory, the subsequent deviant identity or career that develops as a result of being labeled deviant.

Primary Deviance

The initial act of rule-breaking or deviant behavior before society labels it as such, which does not yet affect an individual’s self-concept or societal identification.