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

question 89

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
• E)none of the above

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Definitions:

Job Enlargement

is an approach to job design that increases the number of tasks for a worker, aiming to make the work more varied and interesting.

Job Enrichment

The process of making a job more interesting, challenging, and engaging through adding varied responsibilities and opportunities for growth.

Technocentric Approach

A philosophy that centers technology as the primary driver of societal progress and solutions to problems.

Human Considerations

The acknowledgement and integration of human needs, values, and welfare in decision-making processes.