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

Know the importance of performance specifications for project deliverables.

Identify the truths and misconceptions regarding project staffing.

Comprehend the defining characteristics and constraints of a project.

Recognize the key organizations and their contributions to project management.

---

Definitions:

Unit Product Cost

The total cost to produce one unit of a product, comprising both direct costs like materials and labor, and allocated indirect costs.

Variable Costing

A bookkeeping procedure that adds only variable production fees (including direct materials, direct labor, and variable manufacturing overhead) into the costs associated with products.

Unit Product Cost

The total cost to produce a single unit of product, including direct materials, direct labor, and allocated overhead.

Direct Labor Cost

The expense of labor that can be directly attributed to the production of goods or services.