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.

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Definitions:

Sexist

A term referring to prejudice or discrimination based on sex or gender, typically against women, in the belief or attitude that one sex is superior to the other.

Ultimate Attribution Error

A cognitive bias where individuals attribute negative actions of out-group members to their inherent characteristics while attributing positive actions to situational factors.

Outgroup Derogation

The phenomenon of negatively evaluating or discriminating against members of an outgroup compared to one's ingroup.

Ingroup Bias

The tendency for people to give preferential treatment and positive attitudes towards members of their own group over those from other groups.