Multiple Choice
Zero had a FCFE of $4.5M last year and has 2.25M shares outstanding.Zero's required return on equity is 10%, and WACC is 8.2%.If FCFE is expected to grow at 8% forever, the intrinsic value of Zero's shares is
A) $108.00.
B) $1080.00.
C) $26.35.
D) $14.76.
Correct Answer:
Verified
Correct Answer:
Verified
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