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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