Seaman Had a FCFE of $4

question 109

Multiple Choice

Seaman had a FCFE of $4.6B last year and has 113.2M shares outstanding.Seaman's required return on equity is 11.6% and WACC is 10.4%.If FCFE is expected to grow at 5% forever,the intrinsic value of Seaman's shares are ____________.

• A)$646.48
• B)$64.66
• C)$6,464.8
• D)$6.46
• E)none of the above

---

Definitions:

CS

Common shorthand for "conditioned stimulus," a term from classical conditioning in psychology that refers to a previously neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response.

UCR

Unconditioned Response, an automatic response to a stimulus that does not need to be learned.

CR

In conditioning, this stands for conditioned response, which is a learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Classical Conditioning

A pairing technique in behavioral learning where two stimuli are repeatedly combined; a reaction, initially instigated by the second stimulus, is finally instigated by only the first stimulus.