You Must Estimate the Intrinsic Value of Noe Technologies' Stock

Multiple Choice

You must estimate the intrinsic value of Noe Technologies' stock. The end-of-year free cash flow (FCF1) is expected to be $27.50 million, and it is expected to grow at a constant rate of 7.0% a year thereafter. The company's WACC is 10.0%, it has $125.0 million of long-term debt plus preferred stock outstanding, and there are 15.0 million shares of common stock outstanding. What is the firm's estimated intrinsic value per share of common stock?

A) $48.64
B) $50.67
C) $52.78
D) $54.89
E) $57.08