See Candy Had a FCFE of $6

question 45

Multiple Choice

See Candy had a FCFE of $6.1M last year and has 2.32M shares outstanding.See's required return on equity is 10.6% and WACC is 9.3%.If FCFE is expected to grow at 6.5% forever,the intrinsic value of See's shares are ____________.

• A)$108.00
• B)$68.29
• C)$26.35
• D)$14.76
• E)none of the above

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Definitions:

Variance

A statistical measurement of the dispersion of a set of data points around their mean, indicating how spread out the data are.

Expected Value

A calculated average of all possible outcomes of a random variable, weighted by their probabilities.

Expected Value

A calculated average outcome of a random event, considering all possible outcomes and their probabilities.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.