Danielsen's Has 15,000 Shares of Stock Outstanding and Projected Annual

question 81

Multiple Choice

Danielsen's has 15,000 shares of stock outstanding and projected annual free cash flows of $48,200,$57,900,$71,300,and $72,500 for the next four years,respectively.After that,the cash flows are expected to increase at a constant annual rate of 1.6 percent.What is the current value per share of stock at a discount rate of 15.4 percent?

• A)$31.57
• B)$29.06
• C)$28.99
• D)$26.14
• E)$34.08

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Definitions:

Internal Control Strategy

Measures adopted by an organization to ensure accuracy and integrity of its financial reporting, compliance with laws and regulations, and efficiency of operations.

High Degree

A significant amount or level of something, often indicating intensity, quality, or scale.

Trust

The belief in the reliability, truth, ability, or strength of someone or something, critical in personal and professional relationships.

Feedback Controls

A mechanism in systems and organizations used for adjusting operations and outputs based on differences between actual outcomes and desired outcomes.