Multiple Choice
Highpoint had a FCFE of $246M last year and has 123M shares outstanding. Highpoint's required return on equity is 10%, and WACC is 9%. If FCFE is expected to grow at 8.0% forever, the intrinsic value of Highpoint's shares is
A) $21.60.
B) $108.
C) $244.42.
D) $216.00.
Correct Answer:
Verified
Correct Answer:
Verified
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