Epsilon Consultants Has the Following Projected Free Cash Flows to Equity

question 1

Multiple Choice

Epsilon Consultants has the following projected free cash flows to equity and other information. It has no non-operating assets. Calculate Epsilon's intrinsic value of equity using the FCFE model. $\begin{array} { l c c c } & \text { Year 1 } & \text { Year 2 } & \text { Year } 3 \\ \text { FCFE } & 1,000 & 1,200 & 1,260\\\text { Long-term FCFE growth }&5\%\\\text { Required return on equity }&9\% \end{array}$

• A) $28,440
• B) $31,284
• C) $34,413
• D) $37,854
• E) $41,640

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Definitions:

Hostile Behaviors

Actions or attitudes that are aggressive, antagonistic, or intended to harm or show opposition.

Unrealistic Performance

Expectations or goals that are not achievable given current circumstances or abilities.

Immediate Imitation

entails copying someone's behavior or actions instantly upon observation, without any delay or consideration.

Self-Esteem

An individual's subjective evaluation of their own worth, encompassing beliefs about oneself as well as emotional states such as triumph, despair, pride, and shame.