Based on the Information Provided, Calculate the Intrinsic Value in 2010

question 182

Multiple Choice

Based on the information provided, calculate the intrinsic value in 2010 of a share of INV Corp. using the FCFF (free cash flow to the firm) model. For 2010 the FCFF was $30,000, total debt was $20,000, and there were 12000 shares outstanding. The required rate of return is 9 percent, and the estimated growth rate in FCFF is 6.5 percent.

• A) $104.83
• B) $153.25
• C) $112.50
• D) $94.92
• E) $80.45

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Definitions:

Mother's Voice

The specific auditory perception of one's mother's voice, which is often recognized from a very young age and can have a calming or comforting effect.

Human Voice

The sound produced by humans using the vocal folds for speaking, singing, laughing, crying, screaming, etc.

Soothing music

Refers to types of music composed to relax, calm, and bring comfort to the listener.

Baby's Sounds

Refers to the noises made by infants, which can include crying, cooing, babbling, and laughing, as part of their early communication skills.