You Must Estimate the Intrinsic Value of Tsetseko Technologies' Stock

question 15

Multiple Choice

You must estimate the intrinsic value of Tsetseko Technologies' stock.Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million,and it is expected to grow at a constant rate of 7.00% a year thereafter.The company's WACC is 10.00%.Tsetseko has $125.00 million of long-term debt plus preferred stock,and there are 15.00 million shares of common stock outstanding.What is Tsetseko's estimated intrinsic value per share of common stock?

• A)$28.16
• B)$29.33
• C)$30.56
• D)$31.78

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Definitions:

Disordered Thinking

Disordered thinking is a symptom seen in various mental health conditions, characterized by fragmented or disconnected thoughts, making it difficult to process information coherently.

Hallucinations

Perceptions in the absence of external stimuli that appear real but are created by the mind, such as seeing, hearing, or feeling something that isn't there.

Delusions

Firmly held beliefs or convictions that are contradicted by reality or rational argument, typically as a symptom of mental disorder.

Hallucinations

Perceptual experiences that occur without an external stimulus, often vivid and clear, with the full force and impact of normal perceptions.