Siri Had a FCFE of $1

question 5

Multiple Choice

Siri had a FCFE of $1.6M last year and has 3.2M shares outstanding.Siri's required return on equity is 12% and WACC is 9.8%.If FCFE is expected to grow at 9% forever,the intrinsic value of Siri's shares are ____________.

• A)$68.13
• B)$18.17
• C)$26.35
• D)$14.76
• E)none of the above

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Definitions:

Language Acquisition

The process by which humans gain the ability to perceive and comprehend language, as well as to produce and use words and sentences to communicate.

Critical Time Period

A specific phase in an organism's life during which it is particularly sensitive to environmental stimuli that shape development.

Auditory Pathway

The sequence of neural structures that sound waves travel through to be processed as sounds in the brain, from the ear to the auditory cortex.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into nerve signals that the brain interprets as sound.