SGA Consulting Had a FCFE of $3

question 90

Multiple Choice

SGA Consulting had a FCFE of $3.2M last year and has 3.2M shares outstanding.SGA's required return on equity is 13% and WACC is 11.5%.If FCFE is expected to grow at 8.5% forever, the intrinsic value of SGA's shares are

• A)$21.60.
• B)$26.56.
• C)$244.42.
• D)$24.11.

---

Definitions:

Photodiode

A semiconductor device that converts light into electrical current, commonly used in optical communication systems and light sensing.

Electrical Response

The reaction or output of an electrical system or component when a voltage or current is applied.

Forward Bias

Forward bias is the condition in which a p-n junction semiconductor, such as a diode, allows current to flow freely from the p-side (anode) to the n-side (cathode) by applying a voltage.

Current Flow

Describes the directional movement of electric charge carriers, like electrons, in a circuit, crucial for powering and operating electronic devices.